Sept. 25, 2010
Huntington Revised Home Rule Plan Tabled, But City May Be Ready with Requested Documents by Next Week
Meeting Date Uncertain
By Tony Rutherford
Huntingtonnews.net Reporter
Charleston, WV (HNN) – Although the West Virginia Home Rule Board voted unanimously to table Huntington’s revised proposal, council Finance Committee chairman Steve Williams sees the action as part of the journey. Mayor Kim Wolfe agreed with City Council Finance Committee Chairman Steve Williams that today’s process was more of a procedural delay.
“It’s part of the process, “ Wolfe told HNN Friday evening, Sept. 24. “It’s a complex procedure and everyone wants to make sure that we are doing everything as clearly as possible, that we don’t miss anything.”
The mayor’s understanding from the board “is they are meticulously making sure everything is right.”
Kin Sayre, one of the members of the Home Rule Board, specified in an e-mail to HNN that the “motion requested that Huntington provide certification that the Occupation Tax as proposed is constitutional and a more in-depth study of the Sales and Use tax provisions.”
As the Mayor explained, “We need to clarify the two segments, which is the reason they tabled it. Our understanding is that it’s a detailed process. We will work on those as soon as possible and get back to the board as soon as possible.”
Williams seemed relieved at the questions asked. “These are questions we have addressed along the way.”
Wolfe said having the written data to the Board by next week may be possible. As for a time frame for them taking up the tabled plan, the Mayor said, “we have to make arrangements on their scheduling,” declining to speculate on a new meeting date.
Asked if next week would be a possibility for reconvening, Sayre said, “No.”
Board Member Jim Morgan told HNN that some members feel the pilot program’s accomplishments to date could be jeopardized by a court battle over the occupation tax which puts the constitutionality of the home rule program on the table.
Unlike the insurance lien challenge, Morgan does not foresee any parties with which a fix could be negotiated, such as when Gov. Manchin reconvened the legislature and achieved state wide passage of a fire insurance debris proceeds statute. The legislation mooted the insurance industry suit, which also would have addressed the constitutionality of the pilot program.
Morgan suggested that the state home rule board may decide that the pilot program’s other accomplishments in Huntington and other cities are not worth the risk of losing a constitutionality challenge. He stated Huntington may need to look for other revenue sources. At the same time, he explained that all the board members do not necessarily share his viewpoint.
Though, optimistic, Williams provided a hint that this “step in the journey” could take more than a week. Both the user fee and B & O tax reductions would take effect October 1, along with the occupation tax. Those timetables appear off the table.
The Council Finance Chairman said, "we might be looking at [changing] the B & O tax reduction [time frame]."
While Mayor Wolfe deferred questions on the sales tax to Finance Director Deron Runyon, who has been the contact with the state tax department, Williams viewed the issues raised by the Tax Department as “complicated,” but not unexpected for a pilot project.
Previously, city officials had stated that the sales tax would be withheld by the department for a nominal administration fee. The letter indicated the department’s costs to implement one or more local sales taxes would be about $2.9 million dollars . The city projected collecting only $3.7 million from the tax.
Williams suggested the tax department’s statements may be geared to a broader than Huntington perspective. “The program might expand throughout the state,” the councilman said by reminding that the purpose of a “pilot” is to determine whether the home rule powers should be expanded.
Morgan told HNN that the tax department had stated what their costs would be. The determination of what the charge would be for Huntington , to him, remained unknown.
Council member Frances Jackson who voted against the proposal told HNN, “I had a feeling it would not go smoothly. What happens if the lawsuit is filed (or authority granted) after October 1? Would we still have the user fee? That should have been taken up [earlier],” Jackson stressed emphatically referring to an earlier session where she expressed concerns about “what if’s” that are now slowly becoming reality. “ We wouldn’t be having these conversations right now and [those] we are going to have in the future.”
(Editor’s Note: Further specifics from the interview with Home Rule Pilot Program member and state delegate Jim Morgan will run Sunday on HNN.)
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Huntington Revised Home Rule Plan Tabled, But City May Be Ready with Requested Documents by Next Week
Meeting Date Uncertain
By Tony Rutherford
Huntingtonnews.net Reporter
Charleston, WV (HNN) – Although the West Virginia Home Rule Board voted unanimously to table Huntington’s revised proposal, council Finance Committee chairman Steve Williams sees the action as part of the journey. Mayor Kim Wolfe agreed with City Council Finance Committee Chairman Steve Williams that today’s process was more of a procedural delay.
“It’s part of the process, “ Wolfe told HNN Friday evening, Sept. 24. “It’s a complex procedure and everyone wants to make sure that we are doing everything as clearly as possible, that we don’t miss anything.”
The mayor’s understanding from the board “is they are meticulously making sure everything is right.”
Kin Sayre, one of the members of the Home Rule Board, specified in an e-mail to HNN that the “motion requested that Huntington provide certification that the Occupation Tax as proposed is constitutional and a more in-depth study of the Sales and Use tax provisions.”
As the Mayor explained, “We need to clarify the two segments, which is the reason they tabled it. Our understanding is that it’s a detailed process. We will work on those as soon as possible and get back to the board as soon as possible.”
Williams seemed relieved at the questions asked. “These are questions we have addressed along the way.”
Wolfe said having the written data to the Board by next week may be possible. As for a time frame for them taking up the tabled plan, the Mayor said, “we have to make arrangements on their scheduling,” declining to speculate on a new meeting date.
Asked if next week would be a possibility for reconvening, Sayre said, “No.”
Board Member Jim Morgan told HNN that some members feel the pilot program’s accomplishments to date could be jeopardized by a court battle over the occupation tax which puts the constitutionality of the home rule program on the table.
Unlike the insurance lien challenge, Morgan does not foresee any parties with which a fix could be negotiated, such as when Gov. Manchin reconvened the legislature and achieved state wide passage of a fire insurance debris proceeds statute. The legislation mooted the insurance industry suit, which also would have addressed the constitutionality of the pilot program.
Morgan suggested that the state home rule board may decide that the pilot program’s other accomplishments in Huntington and other cities are not worth the risk of losing a constitutionality challenge. He stated Huntington may need to look for other revenue sources. At the same time, he explained that all the board members do not necessarily share his viewpoint.
Though, optimistic, Williams provided a hint that this “step in the journey” could take more than a week. Both the user fee and B & O tax reductions would take effect October 1, along with the occupation tax. Those timetables appear off the table.
The Council Finance Chairman said, "we might be looking at [changing] the B & O tax reduction [time frame]."
While Mayor Wolfe deferred questions on the sales tax to Finance Director Deron Runyon, who has been the contact with the state tax department, Williams viewed the issues raised by the Tax Department as “complicated,” but not unexpected for a pilot project.
Previously, city officials had stated that the sales tax would be withheld by the department for a nominal administration fee. The letter indicated the department’s costs to implement one or more local sales taxes would be about $2.9 million dollars . The city projected collecting only $3.7 million from the tax.
Williams suggested the tax department’s statements may be geared to a broader than Huntington perspective. “The program might expand throughout the state,” the councilman said by reminding that the purpose of a “pilot” is to determine whether the home rule powers should be expanded.
Morgan told HNN that the tax department had stated what their costs would be. The determination of what the charge would be for Huntington , to him, remained unknown.
Council member Frances Jackson who voted against the proposal told HNN, “I had a feeling it would not go smoothly. What happens if the lawsuit is filed (or authority granted) after October 1? Would we still have the user fee? That should have been taken up [earlier],” Jackson stressed emphatically referring to an earlier session where she expressed concerns about “what if’s” that are now slowly becoming reality. “ We wouldn’t be having these conversations right now and [those] we are going to have in the future.”
(Editor’s Note: Further specifics from the interview with Home Rule Pilot Program member and state delegate Jim Morgan will run Sunday on HNN.)
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