The city of Irondale is considering adopting a 1 percent occupational tax to make up a $1.7 million budget shortfall.
If passed, the tax would be paid by everyone who works in the city of Irondale.
"We need to shore up the budget," said Irondale Mayor Charles Moore. "We have a deficit, and we need to resolve that. We need to be positioned to provide the services that people who live and work in Irondale expect."
Irondale's budget took a big hit when Sam's Club closed earlier this year. The warehouse generated revenues of around $1.4 million annually for the city in the form of sales taxes, property taxes and business licenses.
The city looked to increase revenues by about $900,000 by raising the property tax by 6 mils. The measure failed in a special election on April 10.
The Irondale City Council can adopt an occupational tax themselves.
Council President Steve Marino referred AL.com's questions on the proposed tax to Moore and Councilman David Spivey who sponsored the ordinance to create the tax.
"I am waiting for the public comment to make my decision," Marino said of the tax.
Spivey didn't immediately return a voicemail and email seeking comment on the proposed occupational tax.
Moore said if the city can't increase revenues, then cuts will have to be made to city services. This could potentially lead to cuts in police, fire and public works, he said.
"We think this occupational tax is a good solution to resolving this," Moore said.
The city of Irondale doesn't have any estimates on how much revenue a 1 percent occupational tax could generate.
Moore said city officials believe the revenues will enough to make up for the shortfall and put extra funds in the general fund.
Other nearby cities: Birmingham, Leeds, Bessemer, Fairfield and Midfield have a 1 percent occupational tax.
The Irondale City Council will have a public hearing on the proposed tax at 6 p.m. on Tuesday, May 29.
As no one likes new taxes, Moore said he expects many people to speak out against the tax.