HUNTINGTON -- Huntington City Council unanimously withdrew a proposed 1 percent occupation tax from its agenda Monday with the hopes of creating a more complete tax package during the next few weeks.

The removal came at the recommendation of the council's Finance Committee, which realized after three public hearings that the proposal needed more work, Councilman Steve Williams said.

Furthermore, the occupation tax alone is perceived by the public as a money grab, said Williams, the Finance Committee chairman. There is a consensus of council members, however, who want to offset the revenue that would be gained from the occupation tax with reductions in the business and occupation tax and municipal fee, he said. The $3-a-week user fee also must be repealed if the city implements an occupation tax.

Williams said the withdrawal of the occupation tax is a "timeout to regroup and craft a comprehensive package to encourage business development and investment."

There also likely will be changes made to the occupation tax. In its initial form, the tax withheld 1 percent of the gross earnings of anyone who works in the city and makes more than $10,000 a year. Council Chairman Jim Insco said last week that he expects the body to contemplate caps on the amount of money that an individual would pay as well as lowering the percentage.

Some council members also support the idea of directing any excess revenue from an occupation tax into a special fund for one-time capital improvement projects such as paving, Insco said.

Williams advised council members to make recommendations to him by the end of this week. The new proposals then will go to the Finance Committee for consideration, he said.

"There's still an awful lot of work that needs to be done," Williams said.

File photo/The Herald-Dispatch

Huntington City Hall.