June 12, 2010
Municipal Sales Tax “Dead” Says Council Chairman Insco
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) - The prospect for a one percent municipal sales tax has been abandoned. Council chairman Jim Insco confirmed that following legal research the Finance Committee proposition had been trumped by state law.
The committee had agreed to a fast track version of a municipal sales tax, which would support police and fire pensions. This is part of state code and does not come from the home rule pilot program. However, Insco explained, “The pensions have to be less than three percent funded total and right now we are above that in both police and fire.”
At the Finance Committee meeting members expressed concerns with implementing the tax under the home rule authority. The pilot program comes up for renewal in 2013, so, at most, the city would benefit only two years before it’s authority to levy it would be subject to legislative renewal. In addition, discussions during the Finance Committee meeting revealed a possible home rule component --- lower the occupation tax.
During that meeting on Monday, June 11, the consensus appeared mixed on whether the lowering and/or removal of the business and occupation tax applies only to an occupation tax, a combination occupation / sales tax, or the sales tax.
City Attorney Scott McClure opined that the city may need to present a sales tax proposal without any tax removal to the legislative interim Home Rule committee for prior approval.
As it stands, the state tax department requires at least six months before implementation. The first monies have been predicted to not hit city coffers until around Spring 2010.
Asked whether the Finance Committee will revisit the municipal sales tax, council chairman Insco stressed, “I would say the sales tax is [totally] dead,”
Later council Finance Chairman Steve Williams spoke briefly to HNN about both a tax reform package and clearing up some recent alleged communication issues between the administration and council members, which include the prospect of closing City Hall on Friday , contingency fund use, and reinstating three floodwall workers:
“Let’s hammer this sucker out and get an agreement on something and run with it,” Williams stated. He suggested a group of Four or five [administration and council members] sitting down together and asking , “what’s your concern, what’s your concern, what works here, what doesn’t work here. If we can get four or five minds of one accord, then we can look to see if we can pick up a couple of votes for what we have.”
Numerous council members have been upset by not having been given advance notification of the decision to close City Hall on Friday and the decision to suspend paving. Since the Finance Committee meeting, administration members have been trying to acknowledge in their proposals that council must favorably vote to accept them before they go in force.
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Municipal Sales Tax “Dead” Says Council Chairman Insco
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) - The prospect for a one percent municipal sales tax has been abandoned. Council chairman Jim Insco confirmed that following legal research the Finance Committee proposition had been trumped by state law.
The committee had agreed to a fast track version of a municipal sales tax, which would support police and fire pensions. This is part of state code and does not come from the home rule pilot program. However, Insco explained, “The pensions have to be less than three percent funded total and right now we are above that in both police and fire.”
At the Finance Committee meeting members expressed concerns with implementing the tax under the home rule authority. The pilot program comes up for renewal in 2013, so, at most, the city would benefit only two years before it’s authority to levy it would be subject to legislative renewal. In addition, discussions during the Finance Committee meeting revealed a possible home rule component --- lower the occupation tax.
During that meeting on Monday, June 11, the consensus appeared mixed on whether the lowering and/or removal of the business and occupation tax applies only to an occupation tax, a combination occupation / sales tax, or the sales tax.
City Attorney Scott McClure opined that the city may need to present a sales tax proposal without any tax removal to the legislative interim Home Rule committee for prior approval.
As it stands, the state tax department requires at least six months before implementation. The first monies have been predicted to not hit city coffers until around Spring 2010.
Asked whether the Finance Committee will revisit the municipal sales tax, council chairman Insco stressed, “I would say the sales tax is [totally] dead,”
Later council Finance Chairman Steve Williams spoke briefly to HNN about both a tax reform package and clearing up some recent alleged communication issues between the administration and council members, which include the prospect of closing City Hall on Friday , contingency fund use, and reinstating three floodwall workers:
“Let’s hammer this sucker out and get an agreement on something and run with it,” Williams stated. He suggested a group of Four or five [administration and council members] sitting down together and asking , “what’s your concern, what’s your concern, what works here, what doesn’t work here. If we can get four or five minds of one accord, then we can look to see if we can pick up a couple of votes for what we have.”
Numerous council members have been upset by not having been given advance notification of the decision to close City Hall on Friday and the decision to suspend paving. Since the Finance Committee meeting, administration members have been trying to acknowledge in their proposals that council must favorably vote to accept them before they go in force.
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