City proposes change to business tax in order to conform to state statutes
by Hawkins Teague
May 13, 2008 | 0 0 comments | 1 1 recommendations | email to a friend | print
The City of Cadiz will soon have to change its ordinance relating to how it collects occupational license taxes, City Attorney Allen Wilson said at last week’s city council meeting.

Wilson said that recent Kentucky Revised Statute 67.750 to 67.790 had been designed to streamline the reporting process for cities using the occupational license taxes. Currently, the city divides businesses into “schedules” A, B (such as retail and general sales) and C (professionals such as doctors and lawyers) and charges rates depending on annual gross receipts. Wilson said that businesses would no longer be divided into those classes, and that cities had the option of taxing them based on net profits or gross receipts, which Cadiz has done for some time. City Clerk Lisa Rogers said the deadline for implementing new tax codes was July 15.

Wilson presented a draft of an ordinance that left blanks for the percentage of gross receipts and the minimum and maximum business license taxes. The minimum tax is currently $50, and he said the council could choose whether or not to have a maximum tax or if they wanted to change the minimum. Rogers said that if the council wanted to have some time to consider the rates, there was still enough time to do so before July 15. Council members then agreed to table the first reading for a later date and no vote was taken.

Public Works Director Kerry Fowler reported that the sewer plant was finished installing the new blowers, but that that the engineer said they would also need a vertical screw screen. He said that that the lowest bid for the equipment had been $85,500, and that the city could use the money left over from the blower project, as well as unused money from the recent upgrades to Industrial Park 3. However, he said it would not be quite enough to pay the entire cost.

“In the end, it will cost the city $10,000,” Fowler said.

For a complete recap of the City's business, read The Cadiz Record.
Weather
Click for Cadiz, Kentucky Forecast
Sponsored By:
Beaus Blog Logo
Read Beau's Daily Analysis