Opp approves outside company to collect sales tax, delinquent business license fees

Published 12:00 am Wednesday, May 18, 2011

Business license and sales tax collections were the topics of discussion at Monday night’s Opp City Council meeting.

The council voted to reenter into a contract with RDS to collect sales taxes and delinquent business licenses.

Mayor H.D. Edgar said the company is a watch dog company and “they do a good job.”

City clerk Connie Smith said the company is retained each year to collect sales taxes and tax audits.

“They do a good job doing collections,” she said.

Smith said the company collects 50 percent of what they collect on business licenses.

“They find a lot for us,” she said. “Businesses have the opportunity to pay with us first.”

Councilman Jimmy Rogers said he recalled that the city decided three years ago, when they voted to increase business license fees, that they would revisit the numbers in about two years.

“I thought we were going to review in two years,” he said. “I’d like to make a request to do so.”

Edgar said that the state came out with a model several years ago, and the city adopted a modified version of it.

“I think the beauty shops were modified,” he said.

Councilman Mickey Crew said he had spoken to a couple of businesses who felt their licenses had gone up three times.

Rogers said that business is “terrible and slow, and the businesses are trying to pinch every penny.”

Smith said that sales tax collections, which are holding steady are still up .48 percent for the year. She said the collections for the year are at an all-time high.

Smith said the city collected $165,025 in April, which she said is down from the $170,204 collected last April.

“But, we’re still up,” she said. “For the last couple of years, we’ve seen gain on top of gain.”

Edgar credited that with more people staying in Opp to make purchases.