May 11, 2010
 
Occupation Tax Tabled; Proposed Version Will Die
 
By Tony Rutherford
Huntingtonnews.net Reporter
 
Huntington, WV (HNN) – As anticipated, Huntington City Council voted unanimously (Jim Ritter and Teresa Loudermilk were absent) on Monday, May 11, 2010 to table the 1% proposed occupation tax. Unless a member of council gains support for a motion to reconsider the draft proposal, the version drafted by the Wolfe Administration will be officially declared dead following the next council meeting.
 
“If a motion is not made to bring the ordinance in its present form back, then, it is dead,” at-large councilman Steve Williams said. Thus, “the ordinance as presently constituted is dead.”
 
Reflecting backward, the Finance Chairman stated, “Although we have had four public hearings, the [proposed] ordinance does not pass the muster. There’s a lot of work to be done before this body considers it.”
 
The proposed tax would have been levied on one-percent of income earned within the city limits. Those on fixed incomes , such as retirees or disabilities, or having total earnings of $10,000 a year would have been exempt. However, the 1% would have applied to those working in the city but living elsewhere.
 
But, do not breathe too much of a sigh of relief. It’s likely to return as part of a comprehensive municipal tax reform package.
 
Williams reminded council and others that the proposal has been “perceived as an ordinance to simply raise money.” Thus, council and the administration is “taking a time out to regroup and craft a comprehensive package to encourage business development and investment.”
 
The Finance Committee Chairman asked council members to forward to him via e-mail “amendments and changes” by Friday, May 14, so “we can [begin] re-crafting collective thoughts.” These proposals will then be considered by the Finance Committee.
 
“What I expect we will do is redraft the occupation tax in a much more fair, comprehensive and detailed fashion and place that with three other ordinances,” Williams said following the meeting. The other ordinances would eliminate B & O tax on manufacturing, reduce the B & O tax for service businesses, and one to reduce the B & O tax on retailers.
 
Williams told HNN after the meeting that the Finance Committee will not meet this week, but a meeting will likely be held the week of May 17.



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