July 12, 2010
Tax Package Comes for First Reading Before Huntington City Council, Occupation Tax Now Has “Cap”
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – After adjustments the 1% city occupation tax returns tonight, Monday, July 12, to the Huntington City Council agenda.
The Wolfe Administration made the initial occupation tax proposal, but strong public outcry eventually resulted in council tabling the proposal. Opposition came from the Huntington Regional Chamber of Commerce, Marshall University faculty Senate , and Steel of West Virginia.
Structured as a tax reform package, the three ordinances each have to pass council. The ordinances include the one percent occupation tax with a “cap” of $100,000 (i.e. $1,000) and the repeal of the $3.00 per week city “user” or “service” fee. (No exemptions would be available for those making under $10,000 or the self employed , as in the previously tabled ordinance.) A 1% city sales tax would be added, too, but business friendly reductions would be made on “business and occupation” taxes paid by businesses on gross proceeds. B & O taxes would, for instance, be removed from manufacturing entities.
Asked Sunday evening, July 11, about constituent feedback, Insco said, “I’ve received a couple of e-mails of folks expressing favorable desires” on the reform package. Actually, he stated that direct , face to face discussions elicit more favorable responses because “they realize the complete package is business friendly.”
Since the ordinances are separate, it’s possible that the controversial occupation tax could be voted down and the one percent sales tax approved. Insco said if either the occupation tax or the sales tax were rejected the accompanying business B& O reductions would not be feasible..
If approved, the occupation tax would take effect October 1, 2010 and the sales tax approximately April 1, 2011. Imposition of this tax requires a 180 day notice with the state tax department.
The occupation tax would bring $7-$9 million dollars to the city’s coffers. The sales tax is estimated to generate $3.7 million. The reduced taxes on business would see a reduction of about $3.775 million in revenue.
OPPOSITION READY
HNN contacted Suneel K. Maheshwari, MU professor of legal environment and accountancy, Sunday evening, July 11, who had previously expressed contempt for the earlier occupation tax proposal.
Having been out of town, Dr. Maheshwari did not know that the previously tabled tax had been revived. Asked whether the proposed tax “cap” of $1,000 (i.e. $100,000 gross income) would impact his own opposition or that of the Faculty Senate, he remained adamant in opposition. Explaining that would exempt the President , Coaches, and some deans and administrators, the accounting professor invited anyone to check MU faculty salary statistics , which are public record.
Describing it as a “regressive tax,” Dr. Maheshwari still strongly disfavors the tax, which he believes will not bring the desired business and population growth. The professor told HNN that no one from council or the administration had explored the city’s fiscal status with him. He had previously offered assistance in exploration of alternatives for revenue.
He endorsed the city filing for bankruptcy since pension and health benefits represent such a large percentage of the city’s financial woes.
Dr. Maheshwari, a resident of Proctorville, Ohio, said the tax is unfair to those earning higher incomes and to those who live outside of Huntington but work inside the city. While expressing no opposition to the sales tax, he suggested that , as an example, garbage fees be raised on people within the city receiving services.
Opponents at the Spring public hearing on the original proposal --- particularly those residing outside of the city but working in the city --- called the occupation tax a form of “taxation without representation.” The degree of opposition prompted some opponents to threaten petitions against the tax and voting opposition to anyone casting a favorable vote.
One source who preferred not to be identified told HNN that a vote favoring the occupation tax would be “political suicide.”
HNN has emailed the Chamber of Commerce over the weekend asking if the newly bundled reform proposals would alter their previously negative stance on the occupation tax.
POSSIBLE AMENDMENT
On Thursday, vice chairman Mark Bates expressed intent to request an amendment at the Monday night meeting, which would reduce the amount to 0.75 percent upon residents. Under the proposed amendment, a full one percent would be withheld, but residents of the city could apply for refunds. Any past due city fees of any other nature would be withheld prior to a resident receiving a refund.
COUNCIL RULES AND FIRST READINGS
Insco reminded that council rules do not automatically provide for public input to council on first readings. Likely, since there have been four or five public hearings, the public will NOT be allowed to speak Monday evening, Insco stated.
In order for speakers to be allowed on a first reading, a waiver of the rules must be requested by a member of council AND council approve the waiver. At the second reading, the public will be allowed to speak prior to the vote.
The full agenda is available by clicking: http://www.cityofhuntington.com/pages/aa-councilagenda.html
Huntington City Council meets at 7:30 p.m. Monday in council chambers at Huntington City Hall. The meeting is televised on Comcast Channel 24.
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Tax Package Comes for First Reading Before Huntington City Council, Occupation Tax Now Has “Cap”
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – After adjustments the 1% city occupation tax returns tonight, Monday, July 12, to the Huntington City Council agenda.
The Wolfe Administration made the initial occupation tax proposal, but strong public outcry eventually resulted in council tabling the proposal. Opposition came from the Huntington Regional Chamber of Commerce, Marshall University faculty Senate , and Steel of West Virginia.
Structured as a tax reform package, the three ordinances each have to pass council. The ordinances include the one percent occupation tax with a “cap” of $100,000 (i.e. $1,000) and the repeal of the $3.00 per week city “user” or “service” fee. (No exemptions would be available for those making under $10,000 or the self employed , as in the previously tabled ordinance.) A 1% city sales tax would be added, too, but business friendly reductions would be made on “business and occupation” taxes paid by businesses on gross proceeds. B & O taxes would, for instance, be removed from manufacturing entities.
Asked Sunday evening, July 11, about constituent feedback, Insco said, “I’ve received a couple of e-mails of folks expressing favorable desires” on the reform package. Actually, he stated that direct , face to face discussions elicit more favorable responses because “they realize the complete package is business friendly.”
Since the ordinances are separate, it’s possible that the controversial occupation tax could be voted down and the one percent sales tax approved. Insco said if either the occupation tax or the sales tax were rejected the accompanying business B& O reductions would not be feasible..
If approved, the occupation tax would take effect October 1, 2010 and the sales tax approximately April 1, 2011. Imposition of this tax requires a 180 day notice with the state tax department.
The occupation tax would bring $7-$9 million dollars to the city’s coffers. The sales tax is estimated to generate $3.7 million. The reduced taxes on business would see a reduction of about $3.775 million in revenue.
OPPOSITION READY
HNN contacted Suneel K. Maheshwari, MU professor of legal environment and accountancy, Sunday evening, July 11, who had previously expressed contempt for the earlier occupation tax proposal.
Having been out of town, Dr. Maheshwari did not know that the previously tabled tax had been revived. Asked whether the proposed tax “cap” of $1,000 (i.e. $100,000 gross income) would impact his own opposition or that of the Faculty Senate, he remained adamant in opposition. Explaining that would exempt the President , Coaches, and some deans and administrators, the accounting professor invited anyone to check MU faculty salary statistics , which are public record.
Describing it as a “regressive tax,” Dr. Maheshwari still strongly disfavors the tax, which he believes will not bring the desired business and population growth. The professor told HNN that no one from council or the administration had explored the city’s fiscal status with him. He had previously offered assistance in exploration of alternatives for revenue.
He endorsed the city filing for bankruptcy since pension and health benefits represent such a large percentage of the city’s financial woes.
Dr. Maheshwari, a resident of Proctorville, Ohio, said the tax is unfair to those earning higher incomes and to those who live outside of Huntington but work inside the city. While expressing no opposition to the sales tax, he suggested that , as an example, garbage fees be raised on people within the city receiving services.
Opponents at the Spring public hearing on the original proposal --- particularly those residing outside of the city but working in the city --- called the occupation tax a form of “taxation without representation.” The degree of opposition prompted some opponents to threaten petitions against the tax and voting opposition to anyone casting a favorable vote.
One source who preferred not to be identified told HNN that a vote favoring the occupation tax would be “political suicide.”
HNN has emailed the Chamber of Commerce over the weekend asking if the newly bundled reform proposals would alter their previously negative stance on the occupation tax.
POSSIBLE AMENDMENT
On Thursday, vice chairman Mark Bates expressed intent to request an amendment at the Monday night meeting, which would reduce the amount to 0.75 percent upon residents. Under the proposed amendment, a full one percent would be withheld, but residents of the city could apply for refunds. Any past due city fees of any other nature would be withheld prior to a resident receiving a refund.
COUNCIL RULES AND FIRST READINGS
Insco reminded that council rules do not automatically provide for public input to council on first readings. Likely, since there have been four or five public hearings, the public will NOT be allowed to speak Monday evening, Insco stated.
In order for speakers to be allowed on a first reading, a waiver of the rules must be requested by a member of council AND council approve the waiver. At the second reading, the public will be allowed to speak prior to the vote.
The full agenda is available by clicking: http://www.cityofhuntington.com/pages/aa-councilagenda.html
Huntington City Council meets at 7:30 p.m. Monday in council chambers at Huntington City Hall. The meeting is televised on Comcast Channel 24.
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