Lowe’s tax nears end in Abbeville

The 1/2 percent sales tax approved for the Lowe’s Home Improvement Store in Abbeville seven years ago will go away sometime between now and the end of September.
The Abbeville City Council adopted an ordinance in 2008 levying an additional sales and use tax of 1/2 percent in the Economic Development District No. 1, the Lowe’s location on Charity Street. The company requested the tax that would generate up to $500,000 to help offset cost of the infrastructure development of the site prior to opening its doors in Abbeville in early ‘09.
The agreement upon its implementation called for the tax to end once Lowe’s reached the $500,000 mark, one that is fast approaching.
During a special meeting Tuesday evening, the Abbeville City Council adopted a resolution recognizing that the sales and use tax for Economic Development District No. 1 will expire by its own terms on Sept. 30.
The Vermilion Parish School Board has collected the special tax on behalf of the city since ‘09. The board sends a check to the city, which in turn sends one to Lowe’s.
“The $500,000 is going to be paid off sometime between now and Sept. 30,” City Attorney Ike Funderburk explained during Tuesday’s special meeting. “The school board needs to have a resolution in place, so that they can stop collecting (the tax) in the future.”
Councilman Francis Touchet Jr. asked if there will be an over collection of the $500,000.
“The school board monitors it on a regular basis,” Funderburk answered. “They have a good idea of when the day is going to come.
“It will be stopped at that point and will not be collected any more.”
Councilman-at-Large Francis Plaisance moved on the resolution.
“That’s a 1/2 percent sales tax that the public will be happy to know that will be taken off when they buy something at Lowe’s,” Plaisance said.
Councilman Brady Broussard Jr. agreed.
“Anytime our taxes go down, for any reasons,” Broussard said, “it’s good for our citizens.”
Touchet, who opposed the measure in ‘08, joked that he will soon have another retail option.
“I will be able to start shopping at Lowe’s now,” he said with a laugh.