DONALDSONVILLE — Shoppers at the Wal-Mart Supercenter, Wendy’s Restaurant, Walgreen’s Pharmacy and other nearby businesses will see sales tax rates fall to 10 percent beginning in January, city officials said Tuesday.
During the City Council’s regular meeting, Mayor Leroy Sullivan Sr. said the drop from 11 percent in the shared taxing district comes from an agreement reached between the city, Ascension Parish government and the Ascension Parish Sheriff’s Office.
The entities, along with the Ascension Parish Sales Tax Authority, met Monday to discuss the taxing schedule, Sullivan said.
The area affected is a 750-acre tract along La. 3089 that had been annexed into Donaldsonville.
In addition to the city’s current 9-cent sales tax collection in the area, parish government agreed to cut its current 1.5-cent sales tax collection rate in half to 0.75 cents, while the Sheriff’s Office will decrease its half-cent sales tax collection amount down to a quarter-cent.
The agreement will be signed in the next few weeks, the mayor said, and the change is anticipated to take effect Jan. 1.
The city will not forego any of its sales tax collections in the district, Sullivan said, but the parish and sheriff requested that Donaldsonville sign off on the other entities’ changes.
While tax collections in the area have seen growth in recent months, Sullivan warned that the impending conclusion of a large-scale expansion at the nearby CF Industries facility may soon lead to less sales tax revenue in the area.
Earlier in the evening, the council opened its meeting with a prayer in remembrance of former City Councilwoman Margaret “Teapot” Bonadona, who died Saturday at the age of 72.
Bonadona holds the designation of being the first woman to earn election by residents to the council, Sullivan said.
A retired insurance agent, Bonadona also worked as a newspaper distributor for The Morning Advocate.