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NEWS BRIEFS
Chairman proposes new tax strategy
HUNTINGTON -- Huntington City Council chairman Jim Insco handed his title off for a few minutes at the end of Monday night's council meeting to speak his mind about the direction of the city's finances.
Insco asserted that council must come together to take action or inform the administration that a tax reform package isn't coming.
"The state gave us Home Rule and we have sat back and done nothing," Insco said, taking note of the strides of the Land Bank program. "We just can't stay stagnant. It's time to do something or move on."
The five-year Home Rule program, granted by legislation, affords certain cities in the state the freedom to try different paths to reach financial stability. For Huntington, that includes the option of an occupation tax or a sales tax. Insco said he doesn't want legislators to look at Huntington two years from now and say council and the administration didn't utilize the power granted to them.
"It will give us two years of good numbers," Insco said. "To show (with Home Rule) that we can do it."
Insco handed out a timeline that includes a proposal of several changes within the city's tax structure. First and foremost, he wants a first reading for the occupation tax on the June 28 agenda. Council previously considered a 1 percent occupation tax, but dropped the issue in response to public outcry and then began to pursue, instead, a sales tax.
Insco is calling for a reading of the occupation tax ordinance "as presented," plus he would include a $10,000 floor and $100,000 cap.
His proposal would put the occupation tax in place on Jan. 1, 2011.
The June 28 agenda, according to Insco's timeline, would also include a first reading for repealing the user fee, which must be done in order to enact an occupation tax. But Insco said he is open to increasing the user fee by 50 cents through the remainder of the year to offset furloughs and strengthen the contingency fund.
He also wants a first reading to remove the manufacturing business and occupation tax; a first reading to reduce retail B&O tax from 0.5 to 0.4 percent; and a first reading to reduce the service B&O tax from 1.0 to 0.75 percent.
All would take effect Jan. 1, 2011.
Insco's timeline includes a second reading on July 12. At that meeting, he also would like council to entertain a resolution supporting the administration to prepare a presentation for the Home Rule committee concerning the implementation of a sales tax. If granted, and passed by council, all money would be directly appropriated to the list of capital improvements, including paving, beginning closure of the landfill and separation of storm and sewer lines.
Insco said this is just a plan that he has put together, and he is open for suggestions. He just doesn't want council to watch the rights granted through Home Rule go untouched.
Insco knows he has at least one person on his side. Clinical psychologist David Frederick, who lives outside the city but has an office on 5th Avenue, said he supports an occupation tax even though it will cost him more. He said having lived in California, he enjoyed many services that were only possible because people were willing to pay for them.
"I would love to see the city and chamber of commerce come together and solve these problems," Frederick said.