Although The Cadiz Record reported that American National Rubber employees paid $30,000 in city payroll taxes for 2006, this statement was only partly true. Because of Kentucky Rural Economic Development Act (KREDA) incentives, income taxes are taken out of employees’ paychecks, but the city does not receive the money.

Ernie Baker, the general manager of American National Rubber, explained that with the KREDA incentives, payroll taxes are taken out of employee checks, but go back to the company through “several different avenues.”

City Clerk Lisa Rogers said that this incentive agreement was made on Dec. 21, 1993 and that it expires in 2009.

“The employees think they’re paying the city, but the company keeps it,” said Mayor Lyn Bailey.

Baker said that if the city payroll tax was increased to 1.5 percent, ANR employees would also see that increase reflected on their checks. He said, though, that the money would go to the city after the current incentive program expires.

Bailey said that the city was not required to have a public hearing before moving to increase the tax.

“It’s a done deal,” he said. “The council made their decision at the last meeting.”

For more on the tax increase, see your latest Cadiz Record.