Aug. 13, 2010
Huntington May Tax Restaurant and Bar Receipts, Place Coal Tax in General Fund
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) - Contained within the Amended Huntington Home Rule Plan 2010 is a request to allow a two percent tax on restaurant and bar receipts. The proceeds from this 2% tax would be used to “provide partial coverage for an anticipated bond issue to finance $3.5 million in improvements to the Big Sandy Superstore arena.”
According to the Home Rule Amendment document ( pg. 19) , the request is to “add the receipts of these to those levied on other forms of entertainment and amusements.”
In justifying the tax, the document states: “Restaurants and bars receive direct benefits from the Arena’s shows and other attractions that bring visitors to the area.”
Although City Council has approved allowing a firm to determine the salability of bonds for Big Sandy Superstore Arena renovation, no one in the administration nor city council has spoken of implementing a tax to fund the new seating and other proposed repairs.
The posted proposal does not include an estimate of tax yield. However, “Prior to submission to the State Committee , that estimate will be available.”
Finally, the Amended proposal asks that Huntington’s distribution of Coal Severance Tax be included in the general fund and “spent as other revenues received.” Currently, the city’s distribution from the tax “can only be spent on designated functions.”
Currently, the city has used the tax to fund civic arena operations. For 2009-2010, $263,529 went to the arena and for 2010-2011 about $257,026 is projected for use in BSSA operations.
At least one member of city council had no knowledge of the proposals.
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Huntington May Tax Restaurant and Bar Receipts, Place Coal Tax in General Fund
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) - Contained within the Amended Huntington Home Rule Plan 2010 is a request to allow a two percent tax on restaurant and bar receipts. The proceeds from this 2% tax would be used to “provide partial coverage for an anticipated bond issue to finance $3.5 million in improvements to the Big Sandy Superstore arena.”
According to the Home Rule Amendment document ( pg. 19) , the request is to “add the receipts of these to those levied on other forms of entertainment and amusements.”
In justifying the tax, the document states: “Restaurants and bars receive direct benefits from the Arena’s shows and other attractions that bring visitors to the area.”
Although City Council has approved allowing a firm to determine the salability of bonds for Big Sandy Superstore Arena renovation, no one in the administration nor city council has spoken of implementing a tax to fund the new seating and other proposed repairs.
The posted proposal does not include an estimate of tax yield. However, “Prior to submission to the State Committee , that estimate will be available.”
Finally, the Amended proposal asks that Huntington’s distribution of Coal Severance Tax be included in the general fund and “spent as other revenues received.” Currently, the city’s distribution from the tax “can only be spent on designated functions.”
Currently, the city has used the tax to fund civic arena operations. For 2009-2010, $263,529 went to the arena and for 2010-2011 about $257,026 is projected for use in BSSA operations.
At least one member of city council had no knowledge of the proposals.
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