Mobile Government

CITY COUNCIL MEETINGS: Minutes and Agendas


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The City Council meets every Tuesday


9:00 a.m. - Pre Council Meeting in Government Plaza Conference Room on the First floor.

10:30 a.m. - The Council Meeting begins in Government Plaza Auditorium on the First Floor.


Council minutes for Mar 27, 2012

MUNICIPAL BUILDING, MOBILE, ALABAMA, MARCH 27, 2012

The Council of the City of Mobile, Alabama, met in the Pre-Council Conference Room of the Mobile Government Plaza on Tuesday, March 27, 2012, at 9:00 a.m.

Present:
Chairman: Copeland
Councilmembers: Richardson, Carroll, Burrell, Williams, Rich, Gregory
Absent: None

The meeting was called to order. The Council reviewed and discussed the agenda for their meeting to be held today at 10:30 a.m.

The Presiding Officer adjourned the meeting.

Approved: April 3, 2012



_______________________________
PRESIDENT OF THE COUNCIL

_______________________________
CITY CLERK


MUNICIPAL BUILDING, MOBILE, ALABAMA, MARCH 27, 2012

The Council of the City of Mobile, Alabama, met in the Auditorium of the Mobile Government Plaza on Tuesday, March 27, 2012, at 10:30 a.m., in regular meeting.

The meeting was called to order by City Clerk Lisa C. Lambert.

Pastor Oliver Williams, Newness of Life Outreach Center, offered the invocation.

The Presiding Officer led the Pledge of Allegiance.

Present on Roll Call:

Chairman: Copeland
Councilmembers: Richardson, Carroll, Burrell, Williams, Rich, Gregory
Absent: None

STATEMENT OF RULES BY COUNCIL PRESIDENT:

The Presiding Officer stated that all cell phones must be turned off and dispensed with reading the following Rules concerning communications with the City Council, with the exception of #2 and #4.

1) Any person desiring to address the Council must register upon entering the meeting area. When addressing the Council, the speaker must state his/her name and address.

2) Each speaker is allowed five minutes to address the Council. A bell will sound to indicate the end of 4 minutes. One minute is allowed for summarizing. The second bell indicates the time has expired.

3) To maintain decorum, there will be no undue applause and/or public outcry allowed.

4) When addressing the Council, there is to be no personal address to any individual Councilmember. All statements are to be made to the Chair who will recognize any Councilmember who wishes to respond.

5) Any person desiring to speak to the Council on a non-agenda item must contact the City Clerk's Office no later than 2:00 p.m. on the Thursday prior to the Council Meeting. The subject he/she wishes to address must be identified. Any person attending the meeting who has not given proper notice to the Clerk's Office and wishes to speak on a non-agenda item will not be allowed to address the Council.

6) Those persons desiring to speak on agenda items must indicate the resolution, ordinance, appeal, or public hearing item on arrival when signing in for the meeting.

APPROVAL OF MINUTES:

The minutes of the meeting of March 20, 2012, were approved as submitted.

COMMUNICATIONS FROM THE MAYOR:

Mayor Jones reported on a meeting he and Councilmember Gregory attended last night in the Mobile Terrace community to announce the results of the recent income survey conducted by the South Alabama Regional Planning Commission. Residents were also given a preview of the planned park for the area.

ADOPTION OF THE AGENDA:

Councilmember Richardson moved for the adoption of the agenda, which motion was seconded by Councilmember Burrell, and the vote was as follows:

Ayes: Richardson, Carroll, Burrell, Williams, Rich, Gregory, Copeland
Nays: None

The vote was then announced by the City Clerk, whereupon the Presiding Officer declared the agenda adopted.

APPEALS:

(1) The Council considered the appeal of Nichole Renauld concerning the Mobile Police Department’s denial of her City’s driver license, in accordance with Section 59-52 (a) (7) (a) and Section 59-54 (b) of the Mobile City Code.

Ms. Nichole Renauld, 5455 Henning Drive West, explained that in the process of applying for a job with Bienville Carriages, she was denied a City driver’s license due to criminal incidences from 2007 that were discovered during her background check by the Mobile Police Department. She was appealing to the Council to have this decision reversed and to have her license granted on the grounds that she has fifteen years experience driving carriages and has taken steps to turn her life around and stay out of trouble.

Mobile Police Chief Micheal Williams and Officer Brian Farnell commented on the background check process and the stipulations in the City Code that prohibit a license being issued in the case of criminal activity within the last seven years. They responded to questions from Councilmember Rich.

Council Attorney Jim Rossler responded to questions from Councilmembers Rich, Gregory, Williams and Burrell. Councilmember Richardson made additional comments. Councilmember Gregory asked Councilmember Richardson to allow this issue to be brought before the Public Safety Committee meeting during its meeting scheduled for April 3, 2012. Councilmember Richardson agreed if this matter is assigned to the Public Safety Committee by the President of the Council.

Councilmember Copeland moved that the appeal request be referred to the Public Safety Committee, which will meet on April 3, 2012, for review of a possible change to the ordinance, and that this appeal is contingent on a ruling from the committee, which motion was seconded by Councilmember Gregory, and the vote was as follows:

Ayes: Richardson, Carroll, Burrell, Williams, Rich, Gregory, Copeland
Nays: None

The vote was then announced by the City Clerk, whereupon the Presiding Officer declared the appeal request referred to the Public Safety Committee.

(2) The Council considered the request of Fuego for a waiver of the Noise Ordinance at 2066 Old Shell Road, on May 5, 2012, from 3:00 p.m. until 11:00 p.m. (District 1).

There being no objections, Councilmember Gregory moved that the waiver be granted, which motion was seconded by Councilmember Burrell, and the vote was as follows:

Ayes: Richardson, Carroll, Burrell, Williams, Rich, Gregory Copeland
Nays: None

The vote was then announced by the City Clerk, whereupon the Presiding Officer declared the waiver granted.

(3) The Council considered the request of James Ingram for a waiver of the Noise Ordinance at 457 Charles Street, on April 8, 2012, from 1:00 p.m. until 10:00 p.m.; and on July 4, 2012, from 12:00 noon until 10:00 p.m. (District 2).

There being no objections, Councilmember Gregory moved that the waiver be granted, which motion was seconded by Councilmember Burrell, and the vote was as follows:

Ayes: Richardson, Carroll, Burrell, Williams, Rich, Gregory Copeland
Nays: None

The vote was then announced by the City Clerk, whereupon the Presiding Officer declared the waiver granted.

(4) The Council considered the request of the Mobile Area Chamber of Commerce for a waiver of the Noise Ordinance at 451 Government Street on April 13, 2012, from 10:00 a.m. until 2:00 p.m. (District 2).

There being no objections, Councilmember Gregory moved that the waiver be granted, which motion was seconded by Councilmember Burrell, and the vote was as follows:

Ayes: Richardson, Carroll, Burrell, Williams, Rich, Gregory Copeland
Nays: None

The vote was then announced by the City Clerk, whereupon the Presiding Officer declared the waiver granted.

(5) The Council considered the request of Deloris Lalgy for a waiver of the Noise Ordinance at 1406 Grove Street on April 8, 2012, from 3:00 p.m. until 8:00 p.m. (District 3).

There being no objections, Councilmember Gregory moved that the waiver be granted, which motion was seconded by Councilmember Burrell, and the vote was as follows:

Ayes: Richardson, Carroll, Burrell, Williams, Rich, Gregory Copeland
Nays: None

The vote was then announced by the City Clerk, whereupon the Presiding Officer declared the waiver granted.

(6) The Council considered the request of Tomeka Powe for a waiver of the Noise Ordinance at 808 Cody Road on April 1, 2012, from 9:30 a.m. until 2:00 p.m. (District 7).

There being no objections, Councilmember Gregory moved that the waiver be granted, which motion was seconded by Councilmember Burrell, and the vote was as follows:

Ayes: Richardson, Carroll, Burrell, Williams, Rich, Gregory Copeland
Nays: None

The vote was then announced by the City Clerk, whereupon the Presiding Officer declared the waiver granted.

PUBLIC HEARINGS:

PUBLIC HEARING TO FIX COSTS FOR DEMOLITION OF THE STRUCTURE AT 2712 SPRINGHILL AVENUE, $5,200.00 (DISTRICT 1). The Presiding Officer announced that today was the day for the public hearing to fix costs for demolition of the structure at 2712 Springhill Avenue, and asked if there was anyone present to speak for or against this matter. No one appeared. Councilmember Richardson gave a brief history of the property. Councilmember Gregory and Rich made additional comments.

The Presiding Officer declared the hearing concluded and that the necessary resolution authorizing the proper action would be introduced later in the meeting.

PUBLIC HEARING TO CONSIDER ASSENTING TO THE VACATION OF A PORTION OF THE AIRPORT BOULEVARD SERVICE ROAD (DISTRICT 5) (APPLICANT: PUBLIX GROCERY STORE). The Presiding Officer announced that today was the day for the public hearing to consider assenting to the vacation of a portion of the Airport Boulevard Service Road, and asked if there was anyone present to speak for or against this matter. No one appeared.

The Presiding Officer declared the hearing concluded and that the necessary resolution authorizing the proper action would be introduced later in the meeting.

PUBLIC HEARING TO CONSIDER ASSENTING TO THE VACATION OF A PORTION OF THE UNIVERSITY BOULEVARD SERVICE ROAD (DISTRICT 5) (APPLICANT: PUBLIX GROCERY STORE). The Presiding Officer announced that today was the day for the public hearing to consider assenting to the vacation of a portion of the University Boulevard Service Road, and asked if there was anyone present to speak for or against this matter. No one appeared.

The Presiding Officer declared the hearing concluded and that the necessary resolution authorizing the proper action would be introduced later in the meeting.

PRESENTATION OF PETITIONS AND OTHER COMMUNICATIONS TO THE COUNCIL:

(A) NON-AGENDA ITEMS:

None

(B) AGENDA ITEMS:

None

RESOLUTIONS HELD OVER:

AUTHORIZE CONTRACT WITH A TO Z MUNI-DOT COMPANY FOR BALL FIELD LIGHTING CONTROL LINK SYSTEM FOR TEN PARKS, $117,406.40. The following resolution which was introduced and read at the regular meeting of Tuesday, March 20, 2012, and which was laid over one (1) week until the regular meeting of Tuesday, March 27, 2012, was called up by the Presiding Officer.

RESOLUTION 21-109-2012

Sponsored by: Mayor Jones

BE IT RESOLVED BY THE CITY COUNCIL OF MOBILE, ALABAMA, that the Mayor and the City Clerk be, and they hereby are, authorized and directed to execute and attest, respectively, for and on behalf of the City of Mobile, a contract, by and between the City of Mobile and the company listed below, for work as outlined in the contract attached hereto and made a part hereof as set forth in full, subject to the company signing the contract and furnishing the required bonds and insurance. A copy of said executed contract will be on file in the office of the City Clerk.

Name of Company: A to Z MUNI-DOT COMPANY

Project Name: Ball Field Lighting Control Link System for
Ten City of Mobile Parks

Estimated Cost: $117,406.40

The resolution was read by the City Clerk; whereupon Councilmember Rich moved its adoption, which motion was seconded by Councilmember Richardson, and the vote was as follows:

Ayes: Richardson, Carroll, Burrell, Williams, Rich, Gregory, Copeland
Nays: None

The vote was then announced by the City Clerk, whereupon the Presiding Officer declared the resolution adopted.

SUSPENSION OF RULES FOR IMMEDIATE CONSIDERATION OF ORDINANCES BEING INTRODUCED FOR FIRST TIME:

Councilmember Richardson stated that he was withholding unanimous consent on Ordinance 34-008. The Presiding Officer declared that this item will be laid over according to procedure.

ORDINANCES BEING INTRODUCED:

AMEND ARTICLE II AND ARTICLE VII OF CHAPTER 34 OF THE MOBILE CITY CODE ENTITLED “LICENSES AND TAXATION” TO INCREASE THE RATE OF TAXATION. The following ordinance was laid over for one (1) week to the regular meeting of Tuesday, April 3, 2012.

ORDINANCE 34-008-2012

Sponsored by: Mayor Jones

AN ORDINANCE TO AMEND ARTICLE II AND ARTICLE VII OF CHAPTER 34 OF THE MOBILE CITY CODE ENTITLED "LICENSES AND TAXATION"

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MOBILE, ALABAMA THAT Chapter 34 of the Mobile City Code, Licenses and Taxation, shall be amended to read as follows:

Section 1. The following subsections of Chapter 34, ARTICLE II, Sales and Use Tax, Section 34-21, are hereby amended to increase the rate of taxation without making any other change to Section 34-21.

SECTION 1. (a) - Section 34-21(1), Retail Sales

Section 34-21(1) is amended to change the rate of taxation from four (4) percent to five (5) percent, so that, as amended, Section 34-21(1) shall read as follows:

(1) Retail sales. Upon every person, firm, or corporation, (including the state and its alcoholic beverage control board in the sale of alcoholic beverages of all kinds, the University of Alabama, Auburn University, and all other institutions of higher learning in the state, whether the institutions be denominational, state, county, or municipal institutions, and any association or other agency or instrumentality of the institutions) engaged or continuing within the city in the business of selling at retail any tangible personal property whatsoever, including merchandise and commodities of every kind and character, (not including, however, bonds or other evidences of debts or stocks, nor sales of material and supplies to any person for use in fulfilling a contract for the painting, repair, or reconditioning of vessels, barges, ships, other watercraft, and commercial fishing vessels of over five (5) tons load displacement as registered with the U.S. Coast Guard and licensed by the State of Alabama Department of Conservation and Natural Resources), an amount equal to five (5) percent of the gross proceeds of sales of the business except where a different amount is expressly provided herein. Provided, however, that any person engaging or continuing in business as a retailer and wholesaler or jobber shall pay the tax required on the gross proceeds of retail sales of the business at the rates specified, when his or her books are kept so as to show separately the gross proceeds of sales of each business, and when his or her books are not so kept he or she shall pay the tax as a retailer on the gross sales of the business.

SECTION 1. (b) - Section 34-21(2). Amusements and Entertainment

Section 34-21(2) is amended to change the rate of taxation from four (4) percent to five (5) percent, so that, as amended, Section 34-21(2) shall read as follows:

(2) Amusements and entertainment. Upon every person, firm, or corporation engaged or continuing within the city in the business of conducting or operating places of amusement or entertainment, billiard and pool rooms, bowling alleys, amusement devices, musical devices, theaters, opera houses, moving picture shows, vaudevilles, amusement parks, athletic contests, including wrestling matches, prize fights, boxing and wrestling exhibitions, football and baseball games, (including athletic contests, conducted by or under the auspices of any educational institution within the city or any athletic association thereof, or other association whether the institution or association be a denominational, a state, or county, or a municipal institution, or association or a state, county, or city school, or other institution, association or school), skating rinks, race tracks, golf courses, or any other place at which any exhibition, display, amusement, or entertainment is offered to the public or place or places where an admission fee is charged, including public bathing places, public dance halls of every kind and description within the city, an amount equal to five (5) percent of the gross receipts of any such business. Provided, however, notwithstanding any language to the contrary in the prior portion of this subsection, the tax provisions so specified shall not apply to any athletic event conducted by a public primary or secondary school or any football playoff conducted by or under the auspices of the Alabama High School Athletic Association. The tax amount which would have been collected pursuant to this subsection shall continue to be collected by the public primary or secondary school but shall be retained by the school which collected it and shall be used by the school for school purposes.

SECTION 1.(c) - Section 34-21(3). Machines for mining. quarrying, compounding, processing and manufacturing

Section 34-21(3) is amended to change the rate of taxation from two (2) percent to two and one-quarter (2 1/4) percent, so that, as amended, Section 34-21(3) shall read as follows:

(3) Machines for mining, quarrying, compounding, processing and manufacturing. Upon every person, firm, or corporation engaged or continuing within the city in the business of selling at retail machines used in mining, quarrying, compounding, processing, and manufacturing of tangible personal property an amount equal to two and one-quarter (2 1/4) percent of the gross proceeds of the sale of the machines. The term "machine," as herein used, shall include machinery which is used for mining, quarrying, compounding, processing, or manufacturing tangible personal property, and the parts of the machines, attachments, and replacements therefore, which are made or manufactured for use on or in the operation of the machines and which are necessary to the operation of the machines and are customarily so used.

SECTION 1.(d)- Section 34-21(4), Vehicles

Section 34-21(4) is amended to change the rate of taxation from two (2) percent to two and one-quarter (2 1/4)percent, so that, as amended, Section 34-21(4) shall read as follows:

(4) Vehicles. Upon every person, firm, or corporation engaged or continuing within the city in the business of selling at retail any automotive vehicle, truck trailer, semi-trailer, or house trailer, or mobile home set-up materials and supplies including but not limited to steps, blocks, anchoring, cable pipes, and any other materials pertaining thereto an amount equal to two and one-quarter (2 1/4) percent of the gross proceeds of sale of the automotive vehicle, truck trailer, semi-trailer, or house trailer, or mobile home set-up materials and supplies provided, however, where a person subject to the tax provided for in this subsection withdraws from his or her stock in trade any automotive vehicle or truck trailer, semitrailer, or house trailer for use by him or her or by his or her employee or agent in the operation of the business, there shall be paid, in lieu of the tax levied herein, a fee of five dollars ($5.00) per year or part thereof during which the automotive vehicle, truck trailer, semi-trailer, or house trailer shall remain the property of the person. Each year or part thereof shall begin with the day or anniversary date, as the case may be, of such withdrawal and shall run for the twelve (12) succeeding months or part thereof during which the automotive vehicle, truck trailer, semi-trailer, or house trailer shall remain the property of the person.

Where any used automotive vehicle or truck trailer, semi-trailer, or house trailer is taken in trade or in a series of trades, as a credit or part payment on the sale of a new or used vehicle, the tax levied herein shall be paid on the net difference, that is, the price of the new or used vehicle sold less the credit for the used vehicle taken in trade.

a. Sales of passenger vehicles registered for highway use. Sales of passenger vehicles (such as cars, trucks, vans and all types of passenger vehicles registered for highway use) to persons who reside outside the city and its police jurisdiction, but within the state, for use and consumption outside the city and its police jurisdiction but within the state, shall be taxed at the full rate as defined herein; provided, however, the seller shall be entitled to a refund of the difference between the full rate and the effective rate (as defined herein) upon compliance with each of the following:

1. A certificate (in the form prescribed by the revenue director) executed by the purchaser and seller at the time of sale, a copy of which must be transmitted to the revenue director with the seller's next monthly tax return, attesting that the vehicle was purchased by a person who resided outside the city and the police jurisdiction but within the state;
2. A copy of the registration for the vehicle shall be transmitted to the revenue director within sixty (60) calendar days;
3. Upon receipt of the registration, the seller shall refund the difference between the full rate and the effective rate and the seller may deduct the amount of the refund from the sales tax due with the seller's next monthly tax report if the certificates are attached to the monthly tax report.

b. For the purposes of this section, the term "full rate" means an amount equal to two and one-quarter (2 1/4) percent of the gross proceeds of the sale of passenger vehicles registered for highway use. The term "effective rate" means an amount equal to the tax rate in effect for the sale of passenger vehicles registered for highway use in the state municipality in which a passenger vehicle is registered for the purpose of qualifying for the tax refund allowed in section 34-21(d)(1).

SECTION 1.(e) - Section 34-21(5). Farm Machinery

Section 34-21(5) is amended to change the rate of taxation from two (2) percent to two and one-quarter (2 1/4) percent so that, as amended, Section 34-21(5) shall read as follows:

(5) Farm machinery. Upon every person, firm or corporation engaged or continuing within the city in the business of selling at retail any machine, machinery or equipment which is used in planting, cultivating and harvesting farm products, or used in connection with the production of agricultural produce or products, livestock or poultry on farms, and the parts of such machines, machinery or equipment, attachments and replacements therefore which are made or manufactured for use on or in the operation of such machine, machinery or equipment, and which are necessary to and customarily used in the operation of such machine, machinery or equipment, an amount equal to two and one-quarter percent of the gross proceeds of the sale thereof; provided, that the two and one-quarter percent rate herein prescribed with respect to parts, attachments and replacements shall not apply to any automotive vehicle or trailer designed primarily for public highway use, except farm trailers used primarily in the production and harvesting of agricultural commodities.

Where any used machine, machinery or equipment which is used in planting, cultivating and harvesting farm products, or used in connection with the production of agricultural produce or products, livestock and poultry on farms is taken in trade or in a series of trades as a credit or part payment on a sale of a new or used machine, machinery or equipment, the tax levied herein shall be paid on the net difference, that is, the price of the new or used machine, machinery or equipment sold, less the credit for the used machine, machinery or equipment taken in trade.

SECTION 1.(f) - Section 34-21(6). Coin-operated machines

Section 34-21(6) is amended to change the rate of taxation from four (4) percent to five (5) percent so that, as amended, Section 34-21(6) shall read as follows:

(6) Coin-operated machines. Upon every person, firm, or corporation engaged or continuing within the city in the business of selling through coin-operated dispensing machines, food and food products for human consumption, not including beverages other than coffee, milk, milk products, and substitutes therefore, there is levied a tax equal to five (5) percent of the cost of the food, food products, and beverages sold through the machines, which cost for the purpose of this subsection shall be the gross proceeds of sales of the business.

SECTION 2. The following subsections of Chapter 34, Article II, Sales and Use Tax, Section 34-23, are hereby amended to increase the rate of taxation, without making any other changes to Section 34-23.

SECTION 34-23(a). Retail Purchases

Section 34-23(a) is hereby amended to change the rate of taxation from four (4) percent to five (5) percent so that, as amended, Section 34 -23(a) shall read as follows:

(a) Retail purchases. An excise tax is hereby imposed on the storage, use or other consumption in the city of tangible personal property (not including, however, materials and supplies bought for use in fulfilling a contract for the painting, repairing or reconditioning of vessels, barges, ships, other watercraft and commercial fishing vessels of over five (5) tons load displacement as registered with the U.S. Coast Guard and licensed by the State of Alabama Department of Conservation and Natural Resources) purchased at retail on or after the effective date of this article, for storage, use or other consumption in the city, except as provided in subsections (b), (c) and (d), at the rate of five (5) percent of the sales price of such property within the corporate limits of the city.

SECTION 34-23(b). Machines for Mining. Ouarrving. Processing and Manufacturing.

Section 3423(h) is hereby amended to change the rate of taxation from two (2) percent to two and one-quarter (2 1/4) percent so that, as amended, Section 34-23(b) shall read as follows:

(b) Machines for mining, quarrying, compounding processing and manufacturing. An excise tax is hereby imposed on the storage, use or other consumption in the city of any machines used in mining, quarrying, compounding, processing and manufacturing of tangible personal property purchased at retail on or after the effective date of this article, at the rate of two and one-quarter (2 V 4) percent of the sales price of any such machine; provided, that the term "machine," as herein used, shall include machinery which is used for mining, quarrying, compounding, processing, or manufacturing tangible personal property, and the parts of such machines, attachments and replacements therefor, which are made or manufactured for use on or in the operation of such machines and which are necessary to the operation of such machines and are customarily so used.

SECTION 2.(c) - Section 34-23(c), Vehicles

Section 3423(c) is hereby amended to change the rate of taxation from two (2) percent to two and one-quarter (2 1/4) percent so that, as amended, Section 34-23(c) shall read as follows:

(c) Vehicles. An excise tax is hereby imposed on the storage, use or other consumption in the city of any automotive vehicle or truck trailer, semi-trailer or house trailer, and mobile home set-up materials and supplies including but not limited to steps, blocks, anchoring, cable pipes and any other materials pertaining thereto, purchased at retail on or after the effective date of this article, for storage, use or other consumption in the city at the rate of two and one-quarter (2 1/4) percent of the sales price of such automotive vehicle, truck trailer, semi-trailer or house trailer, and mobile home set-up materials and supplies within the corporate limits of the city. Where any used automotive vehicle or truck trailer, semi-trailer or house trailer is taken in trade, or in a series of trades, as a credit or part payment on the sale of a new or used vehicle, the tax levied herein shall be paid on the net difference, that is, the price of the new or used vehicle sold less the credit for the used vehicle taken in trade.

SECTION 2.(d) - Section 34-23(d), Farm Machinery

Section 34-23(d) is hereby amended to change the rate of taxation from two (2) percent to two and one-quarter (2 1/4) percent so that, as amended, Section 34 23(d) shall read as follows:

(d) Farm machinery. An excise tax is hereby levied and imposed on the storage, use or other consumption in the city of any machine, machinery, or equipment which is used in planting, cultivating and harvesting farm products, or used in connection with the production of agricultural produce or products, livestock or poultry on farms, and the parts of such machines, machinery or equipment, attachments or replacements therefor which are made or manufactured for use on or in the operation of such machine, machinery or equipment, and which are necessary to and customarily used in the operation of such machine, machinery or equipment, which is purchased at retail after the effective date of this article, for the storage, use or other consumption in the city, at the rate of two and one-quarter (2 1/4) percent of the sales price of such property within the corporate limits of the city, regardless of whether the retailer is or is not engaged in the business in the city.

SECTION 3. The following subsections of Chapter 34, Article VII, Tax on Lease of Tangible Personal Property, are hereby amended to increase the rate of taxation without making any other change to Chapter 34, Article VII.

SECTION 3.(a) - Section 34-132(1) Levy of Tax within the corporate limits, is hereby amended to change the rate of taxation from four (4) percent to five (5) percent so that, as amended, Section 34-132(1) shall read as follows:

(1) Upon each person engaging or continuing in the business of leasing or renting tangible personal property within the city at the rate of five (5) percent of the gross proceeds derived by the lessor therefrom; provided that the privilege license tax levied in this article shall not apply to any leasing or rental, as lessor, by the United States of America, the state, or any municipality or county in the state.

SECTION 3.(b) - Section 34-132(2) - Levy of Tax within the police jurisdiction is hereby amended to change the rate from two (2) percent to two and one-half (2 1h) percent so that, as amended, Section 34-23(d) shall read as follows:

(2) Upon each person engaging or continuing in the business of leasing or renting tangible personal property beyond the corporate limits and within the police jurisdiction of the city at the rate of two and one-half (2 1/2) percent of the gross proceeds derived by the lessor therefrom; provided, that the privilege tax levied in this article shall not apply to any leasing or rental, as lessor, by the United States of America, this state or any municipality or county in this state.

REPEALER: All City Code sections and ordinances or parts of City Code sections and ordinances in conflict are hereby repealed.

EFFECTIVE DATE: The effective date of the preceding portion of this Ordinance is May 1, 2012. The preceding portion of this Ordinance shall remain in effect until the occurrence of the earliest of either of the following events: 1. Action by the City Council of the City of Mobile amending Article II and Article VII of Chapter 34 of the Mobile City Code to change rates of taxation set forth herein; or 2. Any 12 month January through December period during which the unemployment rate in the City of Mobile, as published by the Alabama Department of Industrial Relations, is equal to or less than 6% during each of the 12 months, in which case the rate of taxation shall be decreased effective as of the first day of the next following fiscal year of the City, as is more fully set out hereafter in the successor portion of this Ordinance.

BE IT FURTHER ORDAINED BY THE CITY COUNCIL OF MOBILE, ALABAMA THAT Chapter 34 of the Mobile City Code, Licenses and Taxation, shall be and hereby is amended to decrease the rate of taxation effective as of the times and events set forth in the immediately preceding section entitled "Effective Date".

SECTION 1. (a) - Section 34-21(1), Retail Sales

Section 34-21(1) is amended to change the rate of taxation from five (5) percent to four and one-half (4 1/2) percent, so that, as amended, Section 34-21(1) shall read as follows:

(1) Retail sales. Upon every person, firm, or corporation, (including the state and its alcoholic beverage control board in the sale of alcoholic beverages of all kinds, the University of Alabama, Auburn University, and all other institutions of higher learning in the state, whether the institutions be denominational, state, county, or municipal institutions, and any association or other agency or instrumentality of the institutions) engaged or continuing within the city in the business of selling at retail any tangible personal property whatsoever, including merchandise and commodities of every kind and character, (not including, however, bonds or other evidences of debts or stocks, nor sales of material and supplies to any person for use in fulfilling a contract for the painting, repair, or reconditioning of vessels, barges, ships, other watercraft, and commercial fishing vessels of over five (5) tons load displacement as registered with the U.S. Coast Guard and licensed by the State of Alabama Department of Conservation and Natural Resources), an amount equal to four and one-half (4 Y2) percent of the gross proceeds of sales of the business except where a different amount is expressly provided herein. Provided, however, that any person engaging or continuing in business as a retailer and wholesaler or jobber shall pay the tax required on the gross proceeds of retail sales of the business at the rates specified, when his or her books are kept so as to show separately the gross proceeds of sales of each business, and when his or her books are not so kept he or she shall pay the tax as a retailer on the gross sales of the business.

SECTION 1. (b) - Section 34-21(2). Amusements and Entertainment

Section 34-21(2) is amended to change the rate of taxation from five (5) percent to four and one-half (4 1/2) percent, so that, as amended, Section 34-21(2) shall read as follows:

(2) Amusements and entertainment. Upon every person, firm, or corporation engaged or continuing within the city in the business of conducting or operating places of amusement or entertainment, billiard and pool rooms, bowling alleys, amusement devices, musical devices, theaters, opera houses, moving picture shows, vaudevilles, amusement parks, athletic contests, including wrestling matches, prize fights, boxing and wrestling exhibitions, football and baseball games, (including athletic contests, conducted by or under the auspices of any educational institution within the city or any athletic association thereof, or other association whether the institution or association be a denominational, a state, or county, or a municipal institution, or association or a state, county, or city school, or other institution, association or school), skating rinks, race tracks, golf courses, or any other place at which any exhibition, display, amusement, or entertainment is offered to the public or place or places where an admission fee is charged, including public bathing places, public dance halls of every kind and description within the city, an amount equal to four and one-half (4 1/2) percent of the gross receipts of any such business. Provided, however, notwithstanding any language to the contrary in the prior portion of this subsection, the tax provisions so specified shall not apply to any athletic event conducted by a public primary or secondary school or any football playoff conducted by or under the auspices of the Alabama High School Athletic Association. The tax amount which would have been collected pursuant to this subsection shall continue to be collected by the public primary or secondary school but shall be retained by the school which collected it and shall be used by the school for school purposes.

SECTION 1.(c)- Section 34-21(3). Machines for mining. quarrving. compounding, processing and manufacturing

Section 34-21(3) is amended to change the rate of taxation from to two and one-quarter (2 1/4) percent to two and one-eighth (2 1/8) percent, so that, as amended, Section 34-21(3) shall read as follows:

(3) Machines for mining, quarrying, compounding, processing and manufacturing. Upon every person, firm, or corporation engaged or continuing within the city in the business of selling at retail machines used in mining, quarrying, compounding, processing, and manufacturing of tangible personal property an amount equal to two and one-eighth (2 1/8) percent of the gross proceeds of the sale of the machines. The term "machine," as herein used, shall include machinery which is used for mining, quarrying, compounding, processing, or manufacturing tangible personal property, and the parts of the machines, attachments, and replacements therefor, which are made or manufactured for use on or in the operation of the machines and which are necessary to the operation of the machines and are customarily so used.

SECTION 1.(d) - Section 34-21(4), Vehicles

Section 34-21(4) is amended to change the rate of taxation from two and one-quarter (2 1/4) percent to two and one-eighth (2 1/8) percent, so that, as amended, Section 34-21(4) shall read as follows:

(4) Vehicles. Upon every person, firm, or corporation engaged or continuing within the city in the business of selling at retail any automotive vehicle, truck trailer, semi-trailer, or house trailer, or mobile home set-up materials and supplies including but not limited to steps, blocks, anchoring, cable pipes, and any other materials pertaining thereto an amount equal to two and one-eighth (2 1/8) percent of the gross proceeds of sale of the automotive vehicle, truck trailer, semi-trailer, or house trailer, or mobile home set-up materials and supplies provided, however, where a person subject to the tax provided for in this subsection withdraws from his or her stock in trade any automotive vehicle or truck trailer, semi-trailer, or house trailer for use by him or her or by his or her employee or agent in the operation of the business, there shall be paid, in lieu of the tax levied herein, a fee of five dollars ($5.00) per year or part thereof during which the automotive vehicle, truck trailer, semi -trailer, or house trailer shall remain the property of the person. Each year or part thereof shall begin with the day or anniversary date, as the case may be, of such withdrawal and shall run for the twelve (12) succeeding months or part thereof during which the automotive vehicle, truck trailer, semi-trailer, or house trailer shall remain the property of the person.

Where any used automotive vehicle or truck trailer, semi -trailer, or house trailer is taken in trade or in a series of trades, as a credit or part payment on the sale of a new or used vehicle, the tax levied herein shall be paid on the net difference, that is, the price of the new or used vehicle sold less the credit for the used vehicle taken in trade.

a. Sales of passenger vehicles registered for highway use. Sales of passenger vehicles (such as cars, trucks, vans and all types of passenger vehicles registered for highway use) to persons who reside outside the city and its police jurisdiction, but within the state, for use and consumption outside the city and its police jurisdiction but within the state, shall be taxed at the full rate as defined herein; provided, however, the seller shall be entitled to a refund of the difference between the full rate and the effective rate (as defined herein) upon compliance with each of the following:

1. A certificate (in the form prescribed by the revenue director) executed by the purchaser and seller at the time of sale, a copy of which must be transmitted to the revenue director with the seller's next monthly tax return, attesting that the vehicle was purchased by a person who resided outside the city and the police jurisdiction but within the state;
2. A copy of the registration for the vehicle shall be transmitted to the revenue director within sixty (60) calendar days;
3. Upon receipt of the registration, the seller shall refund the difference between the full rate and the effective rate and the seller may deduct the amount of the refund from the sales tax due with the seller's next monthly tax report if the certificates are attached to the monthly tax report.

b. For the purposes of this section, the term "full rate" means an amount equal to two and one-eighth (2 1/8) percent of the gross proceeds of the sale of passenger vehicles registered for highway use. The term "effective rate" means an amount equal to the tax rate in effect for the sale of passenger vehicles registered for highway use in the state municipality in which a passenger vehicle is registered for the purpose of qualifying for the tax refund allowed in section 34-21(d)(1).

SECTION 1.(e) - Section 34-21(5). Farm Machinery

Section 34-21(5) is amended to change the rate of taxation from two and one-quarter (2 1/4) percent to two and one-eighth (2 1/8) percent so that, as amended, Section 34-21(5) shall read as follows:

(5) Farm machinery. Upon every person, firm or corporation engaged or continuing within the city in the business of selling at retail any machine, machinery or equipment which is used in planting, cultivating and harvesting farm products, or used in connection with the production of agricultural produce or products, livestock or poultry on farms, and the parts of such machines, machinery or equipment, attachments and replacements therefore which are made or manufactured for use on or in the operation of such machine, machinery or equipment, and which are necessary to and customarily used in the operation of such machine, machinery or equipment, an amount equal to two and one-eighth (2 1/8) percent of the gross proceeds of the sale thereof; provided, that the two and one-eighth (2 1/8) percent rate herein prescribed with respect to parts, attachments and replacements shall not apply to any automotive vehicle or trailer designed primarily for public highway use, except farm trailers used primarily in the production and harvesting of agricultural commodities.

Where any used machine, machinery or equipment which is used in planting, cultivating and harvesting farm products, or used in connection with the production of agricultural produce or products, livestock and poultry on farms is taken in trade or in a series of trades as a credit or part payment on a sale of a new or used machine, machinery or equipment, the tax levied herein shall be paid on the net difference, that is, the price of the new or used machine, machinery or equipment sold, less the credit for the used machine, machinery or equipment taken in trade.

SECTION 1.(f) - Section 34-21(6). Coin-operated machines

Section 34-21(6) is amended to change the rate of taxation from five (5) percent to four and one-half (4 1/2) percent so that, as amended, Section 34-21(6) shall read as follows:

(6) Coin-operated machines. Upon every person, firm, or corporation engaged or continuing within the city in the business of selling through coin-operated dispensing machines, food and food products for human consumption, not including beverages other than coffee, milk, milk products, and substitutes therefor, there is levied a tax equal to four and one-half (4 1/2) percent of the cost of the food, food products, and beverages sold through the machines, which cost for the purpose of this subsection shall be the gross proceeds of sales of the business.

SECTION 2. The following subsections of Chapter 34, Article II, Sales and Use Tax, Section 34-23, are hereby amended to increase the rate of taxation, without making any other changes to Section 34-23.

SECTION 34-23(a). Retail Purchases

Section 34-23(a) is hereby amended to change the rate of taxation from five (5) percent to four and one-half (4 '72) percent so that, as amended, Section 34-23(a) shall read as follows:

(a) Retail purchases. An excise tax is hereby imposed on the storage, use or other consumption in the city of tangible personal property (not including, however, materials and supplies bought for use in fulfilling a contract for the painting, repairing or reconditioning of vessels, barges, ships, other watercraft and commercial fishing vessels of over five (5) tons load displacement as registered with the U.S. Coast Guard and licensed by the State of Alabama Department of Conservation and Natural Resources) purchased at retail on or after the effective date of this article, for storage, use or other consumption in the city, except as provided in subsections (b), (c) and (d), at the rate of four and one-half (4 1/2) percent of the sales price of such property within the corporate limits of the city.

SECTION 34-23(b). Machines for Mining. Quarrying. Processing and Manufacturing.

Section 34-23(b) is hereby amended to change the rate of taxation from two and one-quarter (2 1/4) percent to two and one-eighth (2 1/8) percent so that, as amended, Section 34-23(b) shall read as follows:

(b) Machines for mining, quarrying, compounding, processing and manufacturing. An excise tax is hereby imposed on the storage, use or other consumption in the city of any machines used in mining, quarrying, compounding, processing and manufacturing of tangible personal property purchased at retail on or after the effective date of this article, at the rate of two and one-eighth (2 1/8) percent of the sales price of any such machine; provided, that the term "machine," as herein used, shall include machinery which is used for mining, quarrying, compounding, processing, or manufacturing tangible personal property, and the parts of such machines, attachments and replacements therefor, which are made or manufactured for use on or in the operation of such machines and which are necessary to the operation of such machines and are customarily so used.

SECTION 2.(c) - Section 34-23(c), Vehicles

Section 34-23(c) is hereby amended to change the rate of taxation from two and one-quarter (2 1/4) percent to two and one-eighth (2 1/8) percent so that, as amended, Section 34-23(c) shall read as follows:

(c) Vehicles. An excise tax is hereby imposed on the storage, use or other consumption in the city of any automotive vehicle or truck trailer, semi-trailer or house trailer, and mobile home set-up materials and supplies including but not limited to steps, blocks, anchoring, cable pipes and any other materials pertaining thereto, purchased at retail on or after the effective date of this article, for storage, use or other consumption in the city at the rate of two and one-eighth (2 1/8) percent of the sales price of such automotive vehicle, truck trailer, semi-trailer or house trailer, and mobile home set-up materials and supplies within the corporate limits of the city. Where any used automotive vehicle or truck trailer, semi-trailer or house trailer is taken in trade, or in a series of trades, as a credit or part payment on the sale of a new or used vehicle, the tax levied herein shall be paid on the net difference, that is, the price of the new or used vehicle sold less the credit for the used vehicle taken in trade.

SECTION 2.(d) - Section 34-23(d). Farm Machinery

Section 34-23(d) is hereby amended to change the rate of taxation from two and one-quarter (2 1/4) percent to two and one-eighth (2 1/8) percent so that, as amended, Section 34-23(d) shall read as follows:

(d) Farm machinery. An excise tax is hereby levied and imposed on the storage, use or other consumption in the city of any machine, machinery, or equipment which is used in planting, cultivating and harvesting farm products, or used in connection with the production of agricultural produce or products, livestock or poultry on farms, and the parts of such machines, machinery or equipment, attachments or replacements therefor which are made or manufactured for use on or in the operation of such machine, machinery or equipment, and which are necessary to and customarily used in the operation of such machine, machinery or equipment, which is purchased at retail after the effective date of this article, for the storage, use or other consumption in the city, at the rate of two and one-eighth (2 1/8) percent of the sales price of such property within the corporate limits of the city, regardless of whether the retailer is or is not engaged in the business in the city.

SECTION 3. The following subsections of Chapter 34, Article VII, Tax on Lease of Tangible Personal Property, are hereby amended to increase the rate of taxation without making any other change to Chapter 34, Article VII.

SECTION 3.(a) - Section 34-132(1) Levy of Tax within the corporate limit, is hereby amended to change the rate of taxation from five (5) percent to four and one-half (4 1/2) percent so that, as amended, Section 34-132(1) shall read as follows:

(1) Upon each person engaging or continuing in the business of leasing or renting tangible personal property within the city at the rate of four and one-half (4 1/2) percent of the gross proceeds derived by the lessor therefrom; provided that the privilege license tax levied in this article shall not apply to any leasing or rental, as lessor, by the United States of America, the state, or any municipality or county in the state.

SECTION 3.(b) - Section 34-132(2) - Levy of Tax within the police jurisdiction is hereby amended to change the rate from two and one-half (2 1/2) percent to two and one-eighth (2 1/8) percent so that, as amended, Section 34-23(d) shall read as follows:

(2) Upon each person engaging or continuing in the business of leasing or renting tangible personal property beyond the corporate limits and within the police jurisdiction of the city at the rate of two and one-eighth (2 1/8) percent of the gross proceeds derived by the lessor therefrom; provided, that the privilege tax levied in this article shall not apply to any leasing or rental, as lessor, by the United States of America, this state or any municipality or county in this state.

REPEALER: All City Code sections and ordinances or parts of City Code sections and ordinances in conflict are hereby repealed.

EFFECTIVE DATE: The effective date of this successor portion of this Ordinance is as of the occurrence either of the events and as of the times set out in preceding section of this Ordinance entitled "Effective Date". The preceding portion of this Ordinance shall remain in effect until the occurrence of the earliest of either of the following:

1. Action by the City Council of the City of Mobile amending Article II and Article VII of Chapter 34 of the Mobile City Code to change rates of taxation set forth herein; or
2. Any 12 month January through December period during which the unemployment rate in the City of Mobile, as published by the Alabama Department of Industrial Relations, is equal to or less than 5% during each of the 12 months, in which case the rate of taxation shall be decreased effective as of the first day of the next following fiscal year of the City, as is more fully set out hereafter in the successor portion of this Ordinance.

BE IT FURTHER ORDAINED BY THE CITY COUNCIL OF MOBILE, ALABAMA THAT Chapter 34 of the Mobile City Code, Licenses and Taxation, shall be and hereby is amended to decrease the rate of taxation effective as of the times and events set forth in the immediately preceding section entitled "Effective Date".

SECTION 1. (a) - Section 34-21(1), Retail Sales

Section 34-21(1) is amended to change the rate of taxation from four and one-half (4 1/2) percent to four (4) percent, so that, as amended, Section 34-21(1) shall read as follows:

(1) Retail sales. Upon every person, firm, or corporation, (including the state and its alcoholic beverage control board in the sale of alcoholic beverages of all kinds, the University of Alabama, Auburn University, and all other institutions of higher learning in the state, whether the institutions be denominational, state, county, or municipal institutions, and any association or other agency or instrumentality of the institutions) engaged or continuing within the city in the business of selling at retail any tangible personal property whatsoever, including merchandise and commodities of every kind and character, (not including, however, bonds or other evidences of debts or stocks, nor sales of material and supplies to any person for use in fulfilling a contract for the painting, repair, or reconditioning of vessels, barges, ships, other watercraft, and commercial fishing vessels of over five (5) tons load displacement as registered with the U.S. Coast Guard and licensed by the State of Alabama Department of Conservation and Natural Resources), an amount equal to four (4) percent of the gross proceeds of sales of the business except where a different amount is expressly provided herein. Provided, however, that any person engaging or continuing in business as a retailer and wholesaler or jobber shall pay the tax required on the gross proceeds of retail sales of the business at the rates specified, when his or her books are kept so as to show separately the gross proceeds of sales of each business, and when his or her books are not so kept he or she shall pay the tax as a retailer on the gross sales of the business.

SECTION 1. (b) - Section 34-21(2). Amusements and Entertainment

Section 34-21(2) is amended to change the rate of taxation from four and one-half (4 1/4 percent to four (4) percent, so that, as amended, Section 34-21(2) shall read as follows:

(2) Amusements and entertainment. Upon every person, firm, or corporation engaged or continuing within the city in the business of conducting or operating places of amusement or entertainment, billiard and pool rooms, bowling alleys, amusement devices, musical devices, theaters, opera houses, moving picture shows, vaudevilles, amusement parks, athletic contests, including wrestling matches, prize fights, boxing and wrestling exhibitions, football and baseball games, (including athletic contests, conducted by or under the auspices of any educational institution within the city or any athletic association thereof, or other association whether the institution or association be a denominational, a state, or county, or a municipal institution, or association or a state, county, or city school, or other institution, association or school), skating rinks, race tracks, golf courses, or any other place at which any exhibition, display, amusement, or entertainment is offered to the public or place or places where an admission fee is charged, including public bathing places, public dance halls of every kind and description within the city, an amount equal to four (4) percent of the gross receipts of any such business. Provided, however, notwithstanding any language to the contrary in the prior portion of this subsection, the tax provisions so specified shall not apply to any athletic event conducted by a public primary or secondary school or any football playoff conducted by or under the auspices of the Alabama High School Athletic Association. The tax amount which would have been collected pursuant to this subsection shall continue to be collected by the public primary or secondary school but shall be retained by the school which collected it and shall be used by the school for school purposes.

SECTION 1.(c)- Section 34-21(3). Machines for mining. quarrying. compounding, processing and manufacturing

Section 34-21(3) is amended to change the rate of taxation from to two and one-eighth (2 1/8) percent to two (2) percent, so that, as amended, Section 34-21(3) shall read as follows:

(3) Machines for mining, quarrying, compounding, processing and manufacturing. Upon every person, firm, or corporation engaged or continuing within the city in the business of selling at retail machines used in mining, quarrying, compounding, processing, and manufacturing of tangible personal property an amount equal to two (2) percent of the gross proceeds of the sale of the machines. The term "machine," as herein used, shall include machinery which is used for mining, quarrying, compounding, processing, or manufacturing tangible personal property, and the parts of the machines, attachments, and replacements therefor, which are made or manufactured for use on or in the operation of the machines and which are necessary to the operation of the machines and are customarily so used.

SECTION 1.(d) - Section 34-21(4). Vehicles

Section 34-21(4) is amended to change the rate of taxation from two and one-eighth (2 1/8) percent to two (2) percent, so that, as amended, Section 34-21(4) shall read as follows:

(4) Vehicles. Upon every person, firm, or corporation engaged or continuing within the city in the business of selling at retail any automotive vehicle, truck trailer, semi-trailer, or house trailer, or mobile home set-up materials and supplies including but not limited to steps, blocks, anchoring, cable pipes, and any other materials pertaining thereto an amount equal to two (2) percent of the gross proceeds of sale of the automotive vehicle, truck trailer, semi-trailer, or house trailer, or mobile home set-up materials and supplies provided, however, where a person subject to the tax provided for in this subsection withdraws from his or her stock in trade any automotive vehicle or truck trailer, semi-trailer, or house trailer for use by him or her or by his or her employee or agent in the operation of the business, there shall be paid, in lieu of the tax levied herein, a fee of five dollars ($5.00) per year or part thereof during which the automotive vehicle, truck trailer, semi-trailer, or house trailer shall remain the property of the person. Each year or part thereof shall begin with the day or anniversary date, as the case may be, of such withdrawal and shall run for the twelve (12) succeeding months or part thereof during which the automotive vehicle, truck trailer, semitrailer, or house trailer shall remain the property of the person.

Where any used automotive vehicle or truck trailer, semi-trailer, or house trailer is taken in trade or in a series of trades, as a credit or part payment on the sale of a new or used vehicle, the tax levied herein shall be paid on the net difference, that is, the price of the new or used vehicle sold less the credit for the used vehicle taken in trade.

a. Sales of passenger vehicles registered for highway use. Sales of passenger vehicles (such as cars, trucks, vans and all types of passenger vehicles registered for highway use) to persons who reside outside the city and its police jurisdiction, but within the state, for use and consumption outside the city and its police jurisdiction but within the state, shall be taxed at the full rate as defined herein; provided, however, the seller shall be entitled to a refund of the difference between the full rate and the effective rate (as defined herein) upon compliance with each of the following:

1. A certificate (in the form prescribed by the revenue director) executed by the purchaser and seller at the time of sale, a copy of which must be transmitted to the revenue director with the seller's next monthly tax return, attesting that the vehicle was purchased by a person who resided outside the city and the police jurisdiction but within the state;
2. A copy of the registration for the vehicle shall be transmitted to the revenue director within sixty (60) calendar days;
3. Upon receipt of the registration, the seller shall refund the difference between the full rate and the effective rate and the seller may deduct the amount of the refund from the sales tax due with the seller's next monthly tax report if the certificates are attached to the monthly tax report.

b. For the purposes of this section, the term "full rate" means an amount equal to two (2) percent of the gross proceeds of the sale of passenger vehicles registered for highway use. The term "effective rate" means an amount equal to the tax rate in effect for the sale of passenger vehicles registered for highway use in the state municipality in which a passenger vehicle is registered for the purpose of qualifying for the tax refund allowed in section 34-21(d)(1).

SECTION 1.(e) - Section 34-21(5), Farm Machinery

Section 34-21(5) is amended to change the rate of taxation from two and one-eighth (2 1/8) percent to two (2) percent so that, as amended, Section 34-21(5) shall read as follows:

(5) Farm machinery. Upon every person, firm or corporation engaged or continuing within the city in the business of selling at retail any machine, machinery or equipment which is used in planting, cultivating and harvesting farm products, or used in connection with the production of agricultural produce or products, livestock or poultry on farms, and the parts of such machines, machinery or equipment, attachments and replacements therefore which are made or manufactured for use on or in the operation of such machine, machinery or equipment, and which are necessary to and customarily used in the operation of such machine, machinery or equipment, an amount equal to two (2) percent of the gross proceeds of the sale thereof; provided, that the two (2) percent rate herein prescribed with respect to parts, attachments and replacements shall not apply to any automotive vehicle or trailer designed primarily for public highway use, except farm trailers used primarily in the production and harvesting of agricultural commodities.

Where any used machine, machinery or equipment which is used in planting, cultivating and harvesting farm products, or used in connection with the production of agricultural produce or products, livestock and poultry on farms is taken in trade or in a series of trades as a credit or part payment on a sale of a new or used machine, machinery or equipment, the tax levied herein shall be paid on the net difference, that is, the price of the new or used machine, machinery or equipment sold, less the credit for the used machine, machinery or equipment taken in trade.

SECTION 1.(f) - Section 34-21(6), Coin-operated machines

Section 34-21(6) is amended to change the rate of taxation from four and one-half (4 1/2) percent to four (4) percent so that, as amended, Section 34-21(6) shall read as follows:

(6) Coin-operated machines. Upon every person, firm, or corporation engaged or continuing within the city in the business of selling through coin-operated dispensing machines, food and food products for human consumption, not including beverages other than coffee, milk, milk products, and substitutes therefor, there is levied a tax equal to four (4) percent of the cost of the food, food products, and beverages sold through the machines, which cost for the purpose of this subsection shall be the gross proceeds of sales of the business.

SECTION 2. The following subsections of Chapter 34, Article II, Sales and Use Tax, Section 34-23, are hereby amended to increase the rate of taxation, without making any other changes to Section 34-23.

SECTION 34-23(a). Retail Purchases

Section 34-23(a) is hereby amended to change the rate of taxation from four and one-half (4 IA) percent to four (4) percent so that, as amended, Section 34-23(a) shall read as follows:

(a) Retail purchases. An excise tax is hereby imposed on the storage, use or other consumption in the city of tangible personal property (not including, however, materials and supplies bought for use in fulfilling a contract for the painting, repairing or reconditioning of vessels, barges, ships, other watercraft and commercial fishing vessels of over five (5) tons load displacement as registered with the U.S. Coast Guard and licensed by the State of Alabama Department of Conservation and Natural Resources) purchased at retail on or after the effective date of this article, for storage, use or other consumption in the city, except as provided in subsections (b), (c) and (d), at the rate of four (4) percent of the sales price of such property within the corporate limits of the city.

SECTION 34-23(b). Machines for Mining, Ouarrving. Processing and Manufacturing.

Section 34-23(b) is hereby amended to change the rate of taxation from two and one-eighth (2 1/8) percent to two (2) percent so that, as amended, Section 34-23(b) shall read as follows:

(b) Machines for mining, quarrying, compounding, processing and manufacturing. An excise tax is hereby imposed on the storage, use or other consumption in the city of any machines used in mining, quarrying, compounding, processing and manufacturing of tangible personal property purchased at retail on or after the effective date of this article, at the rate of two (2) percent of the sales price of any such machine; provided, that the term "machine," as herein used, shall include machinery which


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