June 15, 2010
Huntington Council Chair Insco Proposes Tax Reforms that Include Revisiting Occupation Tax, Sales Tax, and Reductions or Elimination of Some Fees
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Here they come again. Huntington City Council tabled a Wolfe Administration occupation tax proposal after listening to avid citizens complain and threaten boycotts. A sales tax already inscribed in WV statutes will not work for Huntington; it’s pensions are more than 3% funded. Nobody (except upper income earners) like the user fee and Mayor Kim Wolfe stated to HNN about a month ago that he would veto any increase.
Last week at a Finance Committee meeting, council members learned that revenues were coming in way below projections. That will impact a fiscal year carry over. That will impact the contingency fund. That will impact the operating hours of City Hall and the work hours (and pay) of most city employees.
Facing a rapidly approaching austere fiscal 2010-2011 budget passed in March that contains furloughs, cuts, and backwards movement, the chairman of city council, Jim Insco, at the end of the meeting shot from the hip in an unprepared speech that laid out a new start for the tax reform proposals.
Insco warned upfront, not everyone will like this. He also asked, if you have something better, shoot me an email or call. Let’s talk.
Here are Insco’s remarks that preceded his proposals that would on January 1, 2011 institute the occupation tax ($10,000 floor; $100,000 cap), repeal the user fee, remove or repeal portions of business and occupation taxes, AND authorize the administration to approach the home rule authority to clarify and/or waive certain requirements for institution of a municipal sales tax.
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“There’s a line item I’ve prepared for you tonight that I’d like you to take a look at.
“Think it over the next couple of days where we want to go on the occupation tax, the sales tax, whatever we want to do. If we wish to do nothing, then that’s what we need to tell the administration. We’re not going to pass it. We’re not going to listen to it. We’re not going to do the sales tax. We’re not going to approach the Home Rule Committee in the state to see if they will allow us to do the sale tax, then, we need to make that known as well.
…cities in WV have always asked , ‘Let us control our own destiny. Let us control our own financial picture. The state in its wisdom and with the governor’s leadership gave us that authority. We’ve sat back on this occupation tax and done nothing. They gave us what we asked for before I was even born.
“I’m not saying it’s a cure all, end all. I’m not saying what I’ve written is the FINAL say of anything. I’m asking [council members] to take a serious look and see where we want to move this city. If we don’t do something that will balance ourselves along with inflation to move the city forward --- I’m not talking about contracts, hiring people, paying people extra money --- I’m talking about starting capital improvements projects like we said almost a year and [eight] months ago in a law office up the street.
Before we took office, we had four things that we wanted to do. We’ve been in office 18 months and we’ve accomplished one [by] working with the administration on pension reform. We’ve got a great start with the leadership of HURA and Nate Randolph on [eliminating] dilapidated structures. We’re moving forward, but we can’t stand stagnant without any money to provide services.
Either we do something or we keep treading until the last one turns out the lights. Although we on City Council get a lot of easy votes, a lot of kum bay a and a lot of dinners brought, but at the end of the day we are here to make sure we are stewards of the financial ability of this city.
What I have put before you this evening is a plan I think will work. It will give us two years to present to Home Rule what we have asked for over 30 years. It will give us two years of good numbers which proves to them [and] shows them if you give cities their own [financial] destiny, we can be open for business and this city can again be a leader in this state.
Shoot me an email. If you have something better, bring it, let’s discuss it , and let’s move forward. I’d like to be united in this [and] I think we can get enough votes. It’s not a money grab. It’s not we’re going out and hire more people and give new contracts, although we should look at those avenues. It’s a way to fund projects that we need to do… paving, closing the land fill, separating storm sewer lines. There’s not a single member of council that can say each of those project aren’t due.
Look at it. Change it. Make recommendations. But let me know something, so I can go to the administration and say, “Mayor, this is what we are going to propose. Let’s work together.”
To download a PDF of Insco’s proposals, click HERE.
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Huntington Council Chair Insco Proposes Tax Reforms that Include Revisiting Occupation Tax, Sales Tax, and Reductions or Elimination of Some Fees
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Here they come again. Huntington City Council tabled a Wolfe Administration occupation tax proposal after listening to avid citizens complain and threaten boycotts. A sales tax already inscribed in WV statutes will not work for Huntington; it’s pensions are more than 3% funded. Nobody (except upper income earners) like the user fee and Mayor Kim Wolfe stated to HNN about a month ago that he would veto any increase.
Last week at a Finance Committee meeting, council members learned that revenues were coming in way below projections. That will impact a fiscal year carry over. That will impact the contingency fund. That will impact the operating hours of City Hall and the work hours (and pay) of most city employees.
Facing a rapidly approaching austere fiscal 2010-2011 budget passed in March that contains furloughs, cuts, and backwards movement, the chairman of city council, Jim Insco, at the end of the meeting shot from the hip in an unprepared speech that laid out a new start for the tax reform proposals.
Insco warned upfront, not everyone will like this. He also asked, if you have something better, shoot me an email or call. Let’s talk.
Here are Insco’s remarks that preceded his proposals that would on January 1, 2011 institute the occupation tax ($10,000 floor; $100,000 cap), repeal the user fee, remove or repeal portions of business and occupation taxes, AND authorize the administration to approach the home rule authority to clarify and/or waive certain requirements for institution of a municipal sales tax.
***
“There’s a line item I’ve prepared for you tonight that I’d like you to take a look at.
“Think it over the next couple of days where we want to go on the occupation tax, the sales tax, whatever we want to do. If we wish to do nothing, then that’s what we need to tell the administration. We’re not going to pass it. We’re not going to listen to it. We’re not going to do the sales tax. We’re not going to approach the Home Rule Committee in the state to see if they will allow us to do the sale tax, then, we need to make that known as well.
…cities in WV have always asked , ‘Let us control our own destiny. Let us control our own financial picture. The state in its wisdom and with the governor’s leadership gave us that authority. We’ve sat back on this occupation tax and done nothing. They gave us what we asked for before I was even born.
“I’m not saying it’s a cure all, end all. I’m not saying what I’ve written is the FINAL say of anything. I’m asking [council members] to take a serious look and see where we want to move this city. If we don’t do something that will balance ourselves along with inflation to move the city forward --- I’m not talking about contracts, hiring people, paying people extra money --- I’m talking about starting capital improvements projects like we said almost a year and [eight] months ago in a law office up the street.
Before we took office, we had four things that we wanted to do. We’ve been in office 18 months and we’ve accomplished one [by] working with the administration on pension reform. We’ve got a great start with the leadership of HURA and Nate Randolph on [eliminating] dilapidated structures. We’re moving forward, but we can’t stand stagnant without any money to provide services.
Either we do something or we keep treading until the last one turns out the lights. Although we on City Council get a lot of easy votes, a lot of kum bay a and a lot of dinners brought, but at the end of the day we are here to make sure we are stewards of the financial ability of this city.
What I have put before you this evening is a plan I think will work. It will give us two years to present to Home Rule what we have asked for over 30 years. It will give us two years of good numbers which proves to them [and] shows them if you give cities their own [financial] destiny, we can be open for business and this city can again be a leader in this state.
Shoot me an email. If you have something better, bring it, let’s discuss it , and let’s move forward. I’d like to be united in this [and] I think we can get enough votes. It’s not a money grab. It’s not we’re going out and hire more people and give new contracts, although we should look at those avenues. It’s a way to fund projects that we need to do… paving, closing the land fill, separating storm sewer lines. There’s not a single member of council that can say each of those project aren’t due.
Look at it. Change it. Make recommendations. But let me know something, so I can go to the administration and say, “Mayor, this is what we are going to propose. Let’s work together.”
To download a PDF of Insco’s proposals, click HERE.
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Make HNN Your Homepage (IE Users Only)
