By Joe Lewis - Staff Writer
OCT. 2, 2013 —
Olive Hill City Council met in special session Tuesday night for the first reading of an ordinance establishing an occupational payroll tax of one-half percent.
A similar ordinance was introduced in August by Council member Glenn Meade but that measure called for a 1.5 percent tax on employee wages within the city limits.
That rate was highly criticized by school employees and postal workers at a public forum, which led Meade to withdraw the ordinance.
According to estimates from a recently commissioned revenue committee, the one-half percent rate could bring in about $120,000 in new revenue per year.
By the time the Council performs the required second reading, presumably approving the ordinance, the fiscal year’s first quarter and a significant portion of the second quarter will have passed.
That means Olive Hill would not receive the full $120,000 this fiscal year, assuming the Council approves the payroll tax.
Given that the rate was calculated via rough estimates and City Council expects the current fiscal year shortfall could exceed the current estimate of $60,000, the one-half percent rate may not be sufficient to cover the budget deficit.
The Council will conduct a second reading of the ordinance at this month’s regular meeting at 6 p.m. on Tuesday, Oct. 15, at the Senior Community Center.
Joe Lewis can be reached at email@example.com or by telephone at 286-4201.