Vape tax is passed; new city clerk hired

RED BAY — The city council has adopted a vape tax ordinance.

Mayor Charlene Fancher explained the ordinance sets a local tax of 10 cents per milliliter on vape liquids.

Alabama lawmakers approved a 10-cent statewide tax earlier this year. According to the Alabama Department of Revenue, the state’s 10-cent tax will take effect Oct. 1, 2026.

Cities that pass their own tax do not receive a share of the state collections.

This means Red Bay merchants will collect a 10-cent local tax for the city, rather than the city receiving a portion of the state’s 10-cent tax once it is divided among municipalities and counties.

Fancher said the local tax should generate more revenue than relying on the state tax distribution.

Councilman Mike Kennedy asked if the state would collect the tax. Fancher said the city would be responsible.

In other action: The council voted to hire Hannah Baggett as city clerk. Councilman Brad Bolton, speaking on behalf of the search committee, said the city received more than 10 applications and interviewed three finalists.

Baggett was selected based on her accounting and payroll experience at Dick Sparks CPA firm, where she came highly recommended. She was set to officially begin Oct. 6, training with outgoing longtime city clerk Sarah McKinney in the afternoons.

Members also adopted an updated procurement policy required by the Alabama Department of Economic and Community Affairs. The resolution broadens language for Community Development Block Grants and applies to all future ADECA funding.

Councilmembers authorized Northwest Alabama Council of Local Governments to administer the city’s Land and Water Conservation Fund grant, which will cover improvements at the city park including new slides, a pickleball court, an extended walking trail and a dog park. The contract sets NACOLG’s administrative cost at $18,750.