Aug. 4, 2010
Huntington Occupation Tax Feasibility Study NOT Required Prior to Enactment
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Based on the opinions of two members of the state Municipal Home Rule Board, Huntington does not have to conduct a feasibility study prior to enactment of its proposed tax reform package.
The City of Huntington provided in its approved Home Rule submission for the pilot program that enactment of an occupation tax and/or city sales tax was one of the power’s sought. As approved, the City must remove the user fee and reduce business taxes. The adoption of the two new taxes were perceived as revenue neutral.
Pending before Huntington City Council Monday night, August 9, will be an occupation tax that is expected to generate about $8 million dollars annually. The user fee brings about $4.5 million annually. Although a portion of the revenue would go toward reducing B & O taxes, the package could bring up to $3.5 million dollars in additional revenue.
As written, the first $7 million from the tax would go to the general fund. Revenue above $7 million and under $9 million would go to capital improvement projects. Revenue in excess of $9 million (if any) would further reduce the B & O tax.
Kin Sayre, a Martinsburg attorney and member of the Municipal Home Rule Board, wrote HNN Tuesday, August 3 via e-mail that “there is not a requirement that a feasibility study be performed prior to submission of an amendment to the City’s Home Rule Application.”
Del. Jim Morgan, chairman of the House Committee on Government Organization, also stated that no study was required, rather the city’s Home Rule presentation would qualify. Morgan added that the board had received an inquiry from Huntington about amending their proposal. Though there was some discussion of granting the approval in advance, Morgan explained the board agreed to meet “expeditiously.”
That means Huntington City Council has no procedural hurdle blocking its proposed tax reform package.
MU President Dr. Stephen Kopp had also previously told members of the Faculty Senate and Classified Staff that Huntington should conduct an independent study on the occupation tax proposal. Through Matt Turner, Chief of Staff, Kopp believes the “proposal being considered will likely have a major, negative impact not only on faculty/staff recruitment and retention , but also drive current businesses outside the city limits and discourage new businesses from locating within the city limits.”
Turner added, “to more forward without consulting with municipal development and tax experts and closely reviewing how similar tax changes have affected other municipalities for the sake of propping up the city’s current budget is extremely short-sighted and, arguably, irresponsible.”
At large councilman Steve Williams directed attention to an earlier study conducted by Marshall that “called for an end to raising revenue by fees and creating general tax legislation.”
A December 2005 RMS Strategies poll for The State Journal found that more than eight out of ten West Virginians support a “revenue neutral restructuring of the state tax code.”
The sampling included 400 registered voters stated they would like to see taxes change “either because of the burden on their personal finances or because of the taxes’ impact on the state.”
(Editor’s Note: The most “maligned” tax at that time was the gasoline tax (83% called it a burden), followed by the personal property tax on vehicles and homes (76%).
Morgan did state that citizens seldom favor new taxes, but the levying of the tax would be an action voted upon by Huntington City Council. The Municipal Home Rule Board would not be voting on the tax; it would vote on whether to approve Huntington’s amendments to the Home Rule powers already granted.
As for the expiration of the authority, Morgan stated that the board is putting together written documents to present to the legislature to demonstrate the successes of the pilot home rule program. In addition to programs, such as the Land Bank initiated in Huntington, Wheeling has added a few on unoccupied properties, and two cities have mutually adjusted corporate limits.
However, the biggest hurdle to the tax reform objectives of city leaders lies ahead --- West Virginia University law professor Robert Bastress and others have found that the West Virginia Supreme Court is “persistently hostile to local powers under a legislative home rule provision.
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Huntington Occupation Tax Feasibility Study NOT Required Prior to Enactment
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Based on the opinions of two members of the state Municipal Home Rule Board, Huntington does not have to conduct a feasibility study prior to enactment of its proposed tax reform package.
The City of Huntington provided in its approved Home Rule submission for the pilot program that enactment of an occupation tax and/or city sales tax was one of the power’s sought. As approved, the City must remove the user fee and reduce business taxes. The adoption of the two new taxes were perceived as revenue neutral.
Pending before Huntington City Council Monday night, August 9, will be an occupation tax that is expected to generate about $8 million dollars annually. The user fee brings about $4.5 million annually. Although a portion of the revenue would go toward reducing B & O taxes, the package could bring up to $3.5 million dollars in additional revenue.
As written, the first $7 million from the tax would go to the general fund. Revenue above $7 million and under $9 million would go to capital improvement projects. Revenue in excess of $9 million (if any) would further reduce the B & O tax.
Kin Sayre, a Martinsburg attorney and member of the Municipal Home Rule Board, wrote HNN Tuesday, August 3 via e-mail that “there is not a requirement that a feasibility study be performed prior to submission of an amendment to the City’s Home Rule Application.”
Del. Jim Morgan, chairman of the House Committee on Government Organization, also stated that no study was required, rather the city’s Home Rule presentation would qualify. Morgan added that the board had received an inquiry from Huntington about amending their proposal. Though there was some discussion of granting the approval in advance, Morgan explained the board agreed to meet “expeditiously.”
That means Huntington City Council has no procedural hurdle blocking its proposed tax reform package.
MU President Dr. Stephen Kopp had also previously told members of the Faculty Senate and Classified Staff that Huntington should conduct an independent study on the occupation tax proposal. Through Matt Turner, Chief of Staff, Kopp believes the “proposal being considered will likely have a major, negative impact not only on faculty/staff recruitment and retention , but also drive current businesses outside the city limits and discourage new businesses from locating within the city limits.”
Turner added, “to more forward without consulting with municipal development and tax experts and closely reviewing how similar tax changes have affected other municipalities for the sake of propping up the city’s current budget is extremely short-sighted and, arguably, irresponsible.”
At large councilman Steve Williams directed attention to an earlier study conducted by Marshall that “called for an end to raising revenue by fees and creating general tax legislation.”
A December 2005 RMS Strategies poll for The State Journal found that more than eight out of ten West Virginians support a “revenue neutral restructuring of the state tax code.”
The sampling included 400 registered voters stated they would like to see taxes change “either because of the burden on their personal finances or because of the taxes’ impact on the state.”
(Editor’s Note: The most “maligned” tax at that time was the gasoline tax (83% called it a burden), followed by the personal property tax on vehicles and homes (76%).
Morgan did state that citizens seldom favor new taxes, but the levying of the tax would be an action voted upon by Huntington City Council. The Municipal Home Rule Board would not be voting on the tax; it would vote on whether to approve Huntington’s amendments to the Home Rule powers already granted.
As for the expiration of the authority, Morgan stated that the board is putting together written documents to present to the legislature to demonstrate the successes of the pilot home rule program. In addition to programs, such as the Land Bank initiated in Huntington, Wheeling has added a few on unoccupied properties, and two cities have mutually adjusted corporate limits.
However, the biggest hurdle to the tax reform objectives of city leaders lies ahead --- West Virginia University law professor Robert Bastress and others have found that the West Virginia Supreme Court is “persistently hostile to local powers under a legislative home rule provision.
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