Aug. 18, 2010
Williams Envisions Possible Business Growth by End of Next Marshall Term
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Going forward, city council finance chairman Steve Williams recognizes that a heavy load rests on his shoulders. He believes the result of the initial unpleasant dose of tax reform will reap, for instance, lucrative jobs in the city so that most Marshall University graduates do not have to leave Huntington.
Meanwhile, Williams, a wealth analyst, does not think the city can catch their breath. Due to the delay in the deep recession hitting Huntington, he feels the anticipated ‘recovery’ will have to work through international and national levels before it reaches the Tri-State. For that reason, Council’s finance committee will be scrutinizing revenue collections prior to the Monday , August 23, council meeting.
In addition, “I will make a motion to remove” the proposed restaurant/bar two percent tax on receipts and the shifting of the coal severance tax revenue to the general fund be eliminated from the amended home rule plan.
“I’ve not gotten an explanation as to why it was included in the revised plan,” Williams said. “All I can do is guess that it was inadvertently copied then cut and pasted….”
As for implementation of the tax reforms, he offered no opposition to a referendum on the occupation and sales tax proposals. “If that’s what the city charter calls for, fine, the process is working. That’s why they elect us to make decisions for four years and see the results of the decisions,” Williams said.
Oddly enough, while a member of the legislature he wrote a home rule proposal and a column in the Herald-Dispatch in 1993 or 1994. “My legislative proposal was to create a home rule charter , just like a strong mayor charter and a council/manager charter. Under the home rule charter citizens could vote to give government the right to make certain decisions. Sound familiar?”
In other words, Williams will graciously accept the will of the citizens, should the discussed voter initiative obtain enough certified signatures to hold the special election on the Occupation tax.
Until then --- or a lawsuit --- the architect of the tax reform package celebrates that no matter what happens to the one-percent municipal occupation tax or the one percent municipal sales tax, the elimination and/or reduction of business and occupation taxes occur October 1.
“I envision a tax structure that encourages business development, demands fiscal integrity, requires a conservative fiscal policy, and an equitable tax structure.”
Although the occupation tax contains a clause that retains the user fee should it face a court challenge, Williams half smiled when stating “there is nothing in the ordinance that says you continue collection of the business and occupation tax. In the back of my mind, there was always a ‘whatever we do, we get rid of the B & O tax.’ Because of the two votes (imposing the occupation and sales tax) , we now have voted, no matter what happens, the B & O has been reduced.”
Looking at the hearings, “everyone came in with how it was affecting me. I believe the members of council looked beyond that,” adding that no one offered an alternative other than studying the issue. “Everyone was focused on revenue. In my mind all of this was designed so we can start reducing taxes. The user fee had to go…”
The tax burden shifts more to the individual than to business. He believes that the wails and complaints have more to do with “it’s never been done before [here]. People think, I’m having to pay $156 for city services. [But] for streets to be paved, for streets to be safe, for streets to be clean, you need to pay more than $156,” the former Huntington city manager and state legislative delegate observed. “I don’t think anyone will ever say we’re glad they did that, but , in time, they will be glad we did that.”
Calling Marshall University the engine that fuels Huntington , along with the two hospitals, the removal of the B & O tax will allow new businesses to locate in the city limits and closer to the university and the hospitals. By restructuring our tax base, “business will not have to make a choice do we go outside the city or inside the city. Taxes will be equitable.”
The change will move Huntington in the direction of Morgantown, which due to West Virginia University and the spin-off research has the reputation of a recession proof city.
Taking aim at the statement by Dr. Stephen Kopp, MU President, that the tax would hurt faculty recruiting, Williams opined that many recruits would actually see a reduction in their municipal taxes, particularly if they move to Huntington from cities such as Chicago or Columbus, which have much higher occupation taxes.
“Every city that I have worked out of --- Pittsburgh, Chicago, Columbus --- I’ve had to pay an occupation tax,” Williams explained, adding that generally the property taxes are less here too. For instance, a coach moving from a larger city likely would get twice the property value and see a drop in municipal earnings taxes. “They are already paying higher taxes than what they will here.”
Responding to an assertion that approximately 25% of Huntingtonians hover at or near the poverty line, Williams called it a “valid point,” especially since many of the so-called working poor possess neither the skills nor funds for entrepreneurship. “But that’s the reason we need a tax structure that encourages job development, so you can start having jobs other than restaurant or call center employment which offer a better wage and better benefits.”
“When you sit in a university community graduating people year in and year out with higher skill levels, we need to attract the type of jobs that take advantage of the instructional development. One of the things I’ve heard for at least the last 31 years that has prevented the creation of those kinds of jobs in Huntington was the B & O taxes within the city limits. We have yet to be taking advantage of that.”
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Williams Envisions Possible Business Growth by End of Next Marshall Term
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Going forward, city council finance chairman Steve Williams recognizes that a heavy load rests on his shoulders. He believes the result of the initial unpleasant dose of tax reform will reap, for instance, lucrative jobs in the city so that most Marshall University graduates do not have to leave Huntington.
Meanwhile, Williams, a wealth analyst, does not think the city can catch their breath. Due to the delay in the deep recession hitting Huntington, he feels the anticipated ‘recovery’ will have to work through international and national levels before it reaches the Tri-State. For that reason, Council’s finance committee will be scrutinizing revenue collections prior to the Monday , August 23, council meeting.
In addition, “I will make a motion to remove” the proposed restaurant/bar two percent tax on receipts and the shifting of the coal severance tax revenue to the general fund be eliminated from the amended home rule plan.
“I’ve not gotten an explanation as to why it was included in the revised plan,” Williams said. “All I can do is guess that it was inadvertently copied then cut and pasted….”
As for implementation of the tax reforms, he offered no opposition to a referendum on the occupation and sales tax proposals. “If that’s what the city charter calls for, fine, the process is working. That’s why they elect us to make decisions for four years and see the results of the decisions,” Williams said.
Oddly enough, while a member of the legislature he wrote a home rule proposal and a column in the Herald-Dispatch in 1993 or 1994. “My legislative proposal was to create a home rule charter , just like a strong mayor charter and a council/manager charter. Under the home rule charter citizens could vote to give government the right to make certain decisions. Sound familiar?”
In other words, Williams will graciously accept the will of the citizens, should the discussed voter initiative obtain enough certified signatures to hold the special election on the Occupation tax.
Until then --- or a lawsuit --- the architect of the tax reform package celebrates that no matter what happens to the one-percent municipal occupation tax or the one percent municipal sales tax, the elimination and/or reduction of business and occupation taxes occur October 1.
“I envision a tax structure that encourages business development, demands fiscal integrity, requires a conservative fiscal policy, and an equitable tax structure.”
Although the occupation tax contains a clause that retains the user fee should it face a court challenge, Williams half smiled when stating “there is nothing in the ordinance that says you continue collection of the business and occupation tax. In the back of my mind, there was always a ‘whatever we do, we get rid of the B & O tax.’ Because of the two votes (imposing the occupation and sales tax) , we now have voted, no matter what happens, the B & O has been reduced.”
Looking at the hearings, “everyone came in with how it was affecting me. I believe the members of council looked beyond that,” adding that no one offered an alternative other than studying the issue. “Everyone was focused on revenue. In my mind all of this was designed so we can start reducing taxes. The user fee had to go…”
The tax burden shifts more to the individual than to business. He believes that the wails and complaints have more to do with “it’s never been done before [here]. People think, I’m having to pay $156 for city services. [But] for streets to be paved, for streets to be safe, for streets to be clean, you need to pay more than $156,” the former Huntington city manager and state legislative delegate observed. “I don’t think anyone will ever say we’re glad they did that, but , in time, they will be glad we did that.”
Calling Marshall University the engine that fuels Huntington , along with the two hospitals, the removal of the B & O tax will allow new businesses to locate in the city limits and closer to the university and the hospitals. By restructuring our tax base, “business will not have to make a choice do we go outside the city or inside the city. Taxes will be equitable.”
The change will move Huntington in the direction of Morgantown, which due to West Virginia University and the spin-off research has the reputation of a recession proof city.
Taking aim at the statement by Dr. Stephen Kopp, MU President, that the tax would hurt faculty recruiting, Williams opined that many recruits would actually see a reduction in their municipal taxes, particularly if they move to Huntington from cities such as Chicago or Columbus, which have much higher occupation taxes.
“Every city that I have worked out of --- Pittsburgh, Chicago, Columbus --- I’ve had to pay an occupation tax,” Williams explained, adding that generally the property taxes are less here too. For instance, a coach moving from a larger city likely would get twice the property value and see a drop in municipal earnings taxes. “They are already paying higher taxes than what they will here.”
Responding to an assertion that approximately 25% of Huntingtonians hover at or near the poverty line, Williams called it a “valid point,” especially since many of the so-called working poor possess neither the skills nor funds for entrepreneurship. “But that’s the reason we need a tax structure that encourages job development, so you can start having jobs other than restaurant or call center employment which offer a better wage and better benefits.”
“When you sit in a university community graduating people year in and year out with higher skill levels, we need to attract the type of jobs that take advantage of the instructional development. One of the things I’ve heard for at least the last 31 years that has prevented the creation of those kinds of jobs in Huntington was the B & O taxes within the city limits. We have yet to be taking advantage of that.”
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