July 9, 2010
Huntington Council Planning First Reading of Tax Reform Package
Bates Amendment Coming
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) - A package of tax reforms will receive first reading at the Monday, July 12 , session of Huntington City Council. They include the return of the one percent occupation tax which would be levied on individuals engaged in a business, profession, occupation, trade or partnership within the corporate limits of the city.
The package includes enactment of a municipal sales tax, reduction of business and occupation taxes on various types of businesses. However, each of the proposals are contained in a separate ordinance. This means that it would be possible for council members to pass all of the reform elements or, for instance, two out of three. Click for agenda: http://www.cityofhuntington.com/pages/aa-councilagenda.html
Ironically, discussion of the tax packages came on council’s first Thursday afternoon work session. The date change was necessary due to City Hall’s closure on Friday.
The state home rule authority has already agreed to “fast track” approval or non-approval of any packages passed by Huntington City Council, in an effort to make any necessary tweaks to ward off potential litigation.
Council vice chairman Mark Bates told HNN that some ordinances are still in the putting it on paper process. For instance, he revealed that the occupation tax could take effect October 1, 2010 and the sale tax, April 1, 2011. The user fee would be repealed upon implementation of the occupation tax.
The proposal advanced at the last meeting by Chairman Jim Insco had January 1, 2011 as the effective date. Additional Repeals would not take effect until the new revenue streams had cleared potential legal hurdles.
Bates will propose an amendment at Monday night’s council meeting that would alter the occupation tax to 0.75 percent for city residents. Under his conception, at the end of the year, residents could apply for a refund; however, if they owed other back municipal fees , those fees would be paid before any refund was paid.
“What I came up with is if we are going to do the whole package --- the sales tax and the one percent occupation tax --- I would sign on to that if residents were given the opportunity to apply for a 25% refund, which would mean they would ultimately pay 0.75. To keep it simple, everyone would pay the one percent, but you could apply for the refund if you are a city resident who works in the city.”
Bates indicated that he believed the ordinance presented at the work session would have contained the aforementioned language.
“I was a little disappointed, so [over the weekend] I will work on language for an amendment for Monday night’s meeting.”
Bates indicated that council members attending the Thursday work session received only a front page of the sales tax ordinance.
“There are also changes in the sales tax portion. We will receive that over the weekend in an email,” Bates explained.
At this time, Bates forecasts “changes” in the proposed ordinances (as written) and “maybe a couple of readings to get this thing right.”
Finally, Bates told HNN that, for him personally, he found the Thursday afternoon work session likable. “For me to be gone from my business on Friday afternoon is suicide,” he said.
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Huntington Council Planning First Reading of Tax Reform Package
Bates Amendment Coming
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) - A package of tax reforms will receive first reading at the Monday, July 12 , session of Huntington City Council. They include the return of the one percent occupation tax which would be levied on individuals engaged in a business, profession, occupation, trade or partnership within the corporate limits of the city.
The package includes enactment of a municipal sales tax, reduction of business and occupation taxes on various types of businesses. However, each of the proposals are contained in a separate ordinance. This means that it would be possible for council members to pass all of the reform elements or, for instance, two out of three. Click for agenda: http://www.cityofhuntington.com/pages/aa-councilagenda.html
Ironically, discussion of the tax packages came on council’s first Thursday afternoon work session. The date change was necessary due to City Hall’s closure on Friday.
The state home rule authority has already agreed to “fast track” approval or non-approval of any packages passed by Huntington City Council, in an effort to make any necessary tweaks to ward off potential litigation.
Council vice chairman Mark Bates told HNN that some ordinances are still in the putting it on paper process. For instance, he revealed that the occupation tax could take effect October 1, 2010 and the sale tax, April 1, 2011. The user fee would be repealed upon implementation of the occupation tax.
The proposal advanced at the last meeting by Chairman Jim Insco had January 1, 2011 as the effective date. Additional Repeals would not take effect until the new revenue streams had cleared potential legal hurdles.
Bates will propose an amendment at Monday night’s council meeting that would alter the occupation tax to 0.75 percent for city residents. Under his conception, at the end of the year, residents could apply for a refund; however, if they owed other back municipal fees , those fees would be paid before any refund was paid.
“What I came up with is if we are going to do the whole package --- the sales tax and the one percent occupation tax --- I would sign on to that if residents were given the opportunity to apply for a 25% refund, which would mean they would ultimately pay 0.75. To keep it simple, everyone would pay the one percent, but you could apply for the refund if you are a city resident who works in the city.”
Bates indicated that he believed the ordinance presented at the work session would have contained the aforementioned language.
“I was a little disappointed, so [over the weekend] I will work on language for an amendment for Monday night’s meeting.”
Bates indicated that council members attending the Thursday work session received only a front page of the sales tax ordinance.
“There are also changes in the sales tax portion. We will receive that over the weekend in an email,” Bates explained.
At this time, Bates forecasts “changes” in the proposed ordinances (as written) and “maybe a couple of readings to get this thing right.”
Finally, Bates told HNN that, for him personally, he found the Thursday afternoon work session likable. “For me to be gone from my business on Friday afternoon is suicide,” he said.
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