During the recent Alpharetta City Council meeting held on May 19, 2025, discussions centered on the city's occupational tax structure, which has remained unchanged for over two decades. City officials highlighted the need to reassess funding mechanisms for future capital projects, particularly in light of the city's relatively low tax rates compared to neighboring municipalities.
The council noted that Alpharetta's current occupational tax is the least progressive among surrounding cities, with a collection of approximately $1.3 million annually. In comparison, nearby cities like Roswell collect around $7 million, indicating a significant disparity in revenue generation from local businesses. The council's proposal aims to increase the occupational tax by introducing an additional $25 administrative fee and raising the base fee for businesses based on employee count. This adjustment would result in an estimated $850,000 increase in revenue for the general fund.
The proposed changes are designed to ensure that Alpharetta remains competitive while still generating necessary funds for city services. Officials emphasized that even with the proposed increases, Alpharetta's tax burden would remain lower than that of its neighboring cities. The council is seeking feedback from local businesses and residents as they consider these adjustments, which could play a crucial role in the city's financial planning moving forward.
As the council continues to explore funding options, the outcome of these discussions will likely have significant implications for the city's budget and its ability to support community services and infrastructure development. The council is expected to revisit this topic in future meetings, as they work towards a balanced approach to fiscal responsibility and economic growth.