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Joyce Coomer: Seven questions on the Payroll Tax

By Joyce Coomer
Personal commentary

Kentucky does allow counties to impose a sales tax -- it falls under a tourism tax -- don't know the county Renfro Valley is in but there is a 1% tourism tax added to all purchases made in the county. A 1% tourism tax would probably add more income to the city than a payroll tax.

I still have questions about the payroll tax:
  1. Why is this tax being called an "occupational license tax" instead of a "payroll tax"?
  2. Why should precinct workers and domestic workers be exempt? They would be receiving a paycheck from someone.
  3. Why are federal employees exempt?
  4. Will there be any other government workers -- state, county, city -- added to the exemption list?
  5. Why does the city need a list of employees' names and social security numbers?
  6. If there is a set percentage to be withheld from payroll, why and how would the city compute a differing amount than what was withheld? Why does the city have five years in which to do this?
  7. Why am I hearing that things are "different" than the working proposal? If this proposal has been changed, where is a public copy of the newest version?
On distribution of the tax, I would rather see 5% for economic development, 25% for improvements to streets, etc., 10% for the rainy day fund and 40% for the general fund (to be used wisely), and, while I am undecided on this one, 20% for parks and recreation (again, to be used wisely). And, I don't know how one equates paying taxes with having a job unless they're working for the government. Joyce Coomer

To read the proposed payroll tax ordinance: Occupational License Tax Ordinance PDF which has had a first reading and is now before the Columbia, KY, City Council. It is the working copy only. It is not necessarily the final form. That will come after a Public Information Meeting is held Monday, September 8, 2014, at 6pmCT, at City Hall, 116 Campbellsville Street, Columbia, KY. Mayor Mark D. Harris said at the September 2, 2014 Council meeting that the second reading of the bill will be at the next regular monthly meeting, Monday, October 6, 2014, at which time citizen comment time will again be available.




This story was posted on 2014-09-13 11:53:08
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