Costco In Madison (Birmingham, Huntsville, Harvest: 2014, purchase, sales tax)

[johnsonkk]

Originally Posted by cooldiver

I would be shocked (and I have been shocked before ) if Costco were to operate two warehouses in Madison County. Especially when they only operate the one warehouse in the Birmingham area.

I can see the existing warehouse being shuttered and moved west. I would hope that they negotiate a deal with Breland where their customers do not get surcharged with the Breland development fee. I think that is 3%. Everybody at Clift Farms chages that fee except for Publix.

Publix customers never paid that fee, and the store has since been annexed into the City of Madison.

https://whnt.com/news/3-development-...rm-businesses/

Based on observations, just how crowded does the one and single Costco have to get before corporate agrees to opening another Costco? Long lines, crowded aisles, constant restocking. Pardon the expression but it’s a zoo.

[GreggT]

Originally Posted by cooldiver

I can see the existing warehouse being shuttered and moved west. I would hope that they negotiate a deal with Breland where their customers do not get surcharged with the Breland development fee. I think that is 3%. Everybody at Clift Farms chages that fee except for Publix.

Publix customers never paid that fee, and the store has since been annexed into the City of Madison.


https://whnt.com/news/3-development-...rm-businesses/

I think Costco customers would balk at that extra 3%. Already the sales tax is high at 9%, throwing another 3% could be a killer for some of us. Already we have a choice of the Costco in Fort Oglethorpe where the sales tax is 7% and 3% for food items. The only down side is the terrible traffic issue in Chattanooga. Who ever designed the interstate system going through that town must have attended Bangladesh University!

[johnsonkk]

Originally Posted by GreggT

I think Costco customers would balk at that extra 3%. Already the sales tax is high at 9%, throwing another 3% could be a killer for some of us. Already we have a choice of the Costco in Fort Oglethorpe where the sales tax is 7% and 3% for food items. The only down side is the terrible traffic issue in Chattanooga. Who ever designed the interstate system going through that town must have attended Bangladesh University!

Great point. This is also one of the reasons why the Publix on Wall Triana was voted #1 on another (locals) site and it’s a short drive from Clift Farms. Sales tax “in the county” is under 5%, which is significant.

[johnsonkk]

Originally Posted by cooldiver

I would be shocked (and I have been shocked before ) if Costco were to operate two warehouses in Madison County. Especially when they only operate the one warehouse in the Birmingham area.

I can see the existing warehouse being shuttered and moved west. I would hope that they negotiate a deal with Breland where their customers do not get surcharged with the Breland development fee. I think that is 3%. Everybody at Clift Farms chages that fee except for Publix.

Publix customers never paid that fee, and the store has since been annexed into the City of Madison.

https://whnt.com/news/3-development-...rm-businesses/

You sure about Clift being annexed into city of Madison? Not showing on their map.

https://www.madisonal.gov/DocumentCe...Citymap?bidId=

Or was Clift Farms annexed into Huntsville?

[AU HSV]

Originally Posted by johnsonkk

You sure about Clift being annexed into city of Madison? Not showing on their map.

https://www.madisonal.gov/DocumentCe...Citymap?bidId=

Or was Clift Farms annexed into Huntsville?

Currently only Publix is in the city of Madison, everything else in Clift arms including the Costco site is still in the county. Doubt it will be in a couple of years.

[dwhisent]

Originally Posted by GreggT

I think Costco customers would balk at that extra 3%. Already the sales tax is high at 9%, throwing another 3% could be a killer for some of us. Already we have a choice of the Costco in Fort Oglethorpe where the sales tax is 7% and 3% for food items. The only down side is the terrible traffic issue in Chattanooga. Who ever designed the interstate system going through that town must have attended Bangladesh University!

That's the thing, the businesses in Clift Farms (except for Publix) are not in any city limits, so the tax+fee rate is 5.5%, so with the 3% fee (which is also taxed at 5.5%) is just slightly above 8.5%. Publix was annexed into Madison, so the tax rate is 9% for non-food, 8% for food. I would hope that Costco is either planning to stay out of any city limits or negotiate out of the 3%. I agree, 12% would be a hard pill to swallow.

[RocketDawg]

Originally Posted by dwhisent

That's the thing, the businesses in Clift Farms (except for Publix) are not in any city limits, so the tax+fee rate is 5.5%, so with the 3% fee (which is also taxed at 5.5%) is just slightly above 8.5%. Publix was annexed into Madison, so the tax rate is 9% for non-food, 8% for food. I would hope that Costco is either planning to stay out of any city limits or negotiate out of the 3%. I agree, 12% would be a hard pill to swallow.

I don't see how the "Breland Fee" is legal. It's like an individual, not a municipality, is able to charge a sales tax.

[johnsonkk]

Originally Posted by RocketDawg

I don't see how the "Breland Fee" is legal. It's like an individual, not a municipality, is able to charge a sales tax.

It’s supposedly a recoupment fee for installing the utilities beyond what the costs were to bring the utilities to the edge of Clift farms.

With the Harvest fee, it was “1% for 10 years or until paid”. A smart shopper in 2019 reminded Publix of this 1% fee beyond the 10 year mark and possibly threatened lawsuit. Harvest officials leaned on Publix and they dropped that 1% fee.

The problem with the Clift farms is that it is for 50 years! That’s a long time. And it’s 3% vs a “more invisible 1%”. Almost like a skimmer in the movie “Office Space”. People can vote with their feet but based on the restaurants there, business is doing just fine.

[AU HSV]

Originally Posted by johnsonkk

It’s supposedly a recoupment fee for installing the utilities beyond what the costs were to bring the utilities to the edge of Clift farms.

With the Harvest fee, it was “1% for 10 years or until paid”. A smart shopper in 2019 reminded Publix of this 1% fee beyond the 10 year mark and possibly threatened lawsuit. Harvest officials leaned on Publix and they dropped that 1% fee.

The problem with the Clift farms is that it is for 50 years! That’s a long time. And it’s 3% vs a “more invisible 1%”. Almost like a skimmer in the movie “Office Space”. People can vote with their feet but based on the restaurants there, business is doing just fine.

Its also helping to pay for the flyover I-565 ramps at Town Madison, which would still not be built otherwise.

[sk8grd]

Originally Posted by johnsonkk

It’s supposedly a recoupment fee for installing the utilities beyond what the costs were to bring the utilities to the edge of Clift farms.

With the Harvest fee, it was “1% for 10 years or until paid”. A smart shopper in 2019 reminded Publix of this 1% fee beyond the 10 year mark and possibly threatened lawsuit. Harvest officials leaned on Publix and they dropped that 1% fee.

The problem with the Clift farms is that it is for 50 years! That’s a long time. And it’s 3% vs a “more invisible 1%”. Almost like a skimmer in the movie “Office Space”. People can vote with their feet but based on the restaurants there, business is doing just fine.

Per Phil's facebook page from 2022

Phil Vandiver
May 11, 2022
·
Today at the Madison County Commission meeting we approved several appointees to reorganize 2 boards to start the legal procedure that will eventually end the fee known as Harvest Tax at the Harvest Square shopping center. The 2 million dollar bond that was used for road improvements and sewer improvements has been paid off a year early. The bond was setup to repay in 15 years and began in December of 2008. The fee does not automatically end. One board will have to meet and appoint members to the CO-OP board. Those will join appointees from Harvest Monrovia Water and the developer. That group of 5 will be able to vote and stop the fee. As you can see the legal steps of this will take a while to go through and are confusing. I just wanted to let you know the bond has been paid off and the process to stop the fee has begun.

Phil Vandiver
June 17, 2022
·
District 4 update.
Yesterday the Harvest Square Cooperative District Board met and voted to abolish the board and stop the collection of the 1 cent fee. The attorney from Birmingham who represents the Board will now contact the collection agency for the 1 cent fee and advise them to stop the collection. The attorney was not sure how quick this could happen but said he would work to make it as soon as possible. The question was asked if it could be done by July 1 and he thought it could be quicker than that. Any fee that was overpaid will come to the county and be used for its intended purpose of improvements within the Harvest Square development. The County Commission has a project approved to improve the turn lanes and safety of the intersection and businesses north on Jeff Road and Highway 53 at a cost of 1.2 million dollars. I want to thank all that have served on the boards to help get the fee stopped after it’s intended purpose has been met. I would also like to thank Jeff Rich the Madison County Commissions Attorney for his assistance in this matter. His assistance has help clarify and move this process along quicker and getting this fee stopped after all the legal obligations have been met.