July 2, 2003


John Barrett

Beacon Hill Institute

Suffolk University

8 Ashburton Place

Boston, MA 02108-2270

RE: Stamp Model for City of Mobile

Dear John:

As a City Councilman for the City of Mobile, my public policy goals have included, among other items, achieving tax reform for our city. Three elements of that tax reform include the elimination of Mobile's so-called "2% out-of-county tax” , a conversion from Mobile's antiquated gross receipts tax structure to a true "sales and use" tax structure, and a reduction in the overall sales tax rate. Last year, I announced via press release that the Beacon Hill Institute would be providing a "Stamp Model" which would study the effects of certain of these changes and project the impact of certain changes on capital formation, job formation, and future tax revenue. The receipt of the study earlier this year has greatly assisted me in my ability as a City Councilman to move these items forward. In fact, we have this year repealed the 2% "out-of-county tax", and passed an ordinance which will shortly convert our gross receipts tax structure to a true sales and use tax structure. I am hopeful that we will achieve our goal of reducing the sales tax rate later this year.

The Mobile Stamp Model has been of great assistance to me both personally and as a City Councilman in the pursuit of these public policy goals that I believe are so important to the future of our city. I truly appreciate the assistance provided by the Beacon Hill Institute.








*Please note that is a fascimile of the original correspondence endorsing BHI's work. It has been formatted for the web. Original copies of correspondence are available upon request.