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BUSINESS
Business owners say they're concerned about tax
Julian Saad, owner of Julian's Market, stands in opposition of the proposed 1 percent occupation tax for those who work in the city Thursday, July 29, 2010, in Huntington.
Purchase this photoHUNTINGTON -- Some local business owners voiced their concerns about a proposed 1 percent occupation tax for those who work in the city.
The proposal is up for a third reading and a potential vote on Monday, Aug. 9.
"This absolutely going to hurt the businesses in Huntington," said Julian Saad, owner of Julian's Market and other local stores. "It's not the best way to raise money. The city of Huntington should re-organize and reconstruct within City Hall and start from scratch there.
"If you're going to have an occupation tax, you're going to push people out of Huntington. It's going to hurt the businesses and the city of Huntington."
The tax would be 1 percent on the gross earnings for anyone who works in the city limits, including those who are self employed. After an amendment approved Monday, it would have a $125,000 cap, so the most any worker would pay would be $1,250 per year.
In conjunction with the tax, the city would repeal its $3-a-week user fee and lower business and occupation taxes by half. The package would also include a 1 percent sales tax.
While some business owners declined comment for various reasons, but said that they don't necessarily oppose the tax if it helps the city, others offered up concerns similar to Saad's. That includes the Huntington Regional Chamber of Commerce, which has voiced opposition to the tax on behalf of many local business members not in favor of it.
Huntington dermatologist Dr. Elaine Young said she wrote letters to City Council members after the possibility of an occupation tax was announced earlier this year.
Young has three employees, all of whom live outside the city. Along with concerns that it would drive Huntington employees to jobs outside the city, she's concerned about the constant increases of taxes and costs for her practice, and that the city is adding taxes when there's no clear evidence of how it's enforcing its current taxes.
"I want someone to do a study to see how much of the B and O tax is being collected," she said. "I bet you can find that a consistent number of businesses pay, and a consistent number of businesses don't and there are no consequences. I bet you'd find (the same businesses paying for everybody).
"I'm willing to pay to work in the city, but I still think you should work on your collection of B and O taxes. ...As long as it's fair to everybody. We all have to do our part."
Realtor Frances McGuire said that the first week that the occupation tax was announced in the spring, he got phone calls from two businesses that wanted to look into relocating outside the city, and they cited the possible occupation tax as the reason.
"I'm concerned about keeping businesses in Huntington and attracting new business into Huntington," McGuire said. "I'm not 100 percent opposed to the tax because the city needs money. To offset that, if they reduce the B and O tax, that makes Huntington more attractive. There are two sides to it."
Rick Houvouras, owner of Star Technologies, said he'd like to see the city "get their house in better order before they ask us for more money."
He contested that some retirees from the police and fire department are draining the city finances because of overabundant pensions. The system that allowed them to receive so much pension has been altered, but he still finds it unreasonable to raise taxes for others.
"If we're going to have to give more money, I think those employees who took advantage of that situation should give back," he said. "That's not fair. We're not getting our streets paved, and certain things were done so that these guys are retiring at the age of 50 making more money than when they were working.
"...They have addressed it, but why should you make more money than while you were working and ask us for a large increase in taxes to pay for it?"
Attorney David Tyson would prefer a sales tax over an occupation tax.
"I am not for an occupation tax. That being said, I do not oppose an increase in the sales tax for city use because I know the city needs more money," he said. "Everyone would be paying the sales tax when they come in and purchase goods, and with an occupation tax, it seems as if you're singling out businesses and punishing them for doing business within the corporate limits of the city of Huntington."
