By: Charles Romans
Carter County Times
The City of Olive Hill recently discussed a potential raise to the payroll tax in the city, but although the issue was brought to a motion, the increase did not pass. As an alternative to that, in a special meeting on June 23, the city council discussed other options.
One of those options was raising the insurance tax; this would cover policies including automobile, fire, homeowners, casualty and liability, inland marine, life insurance, and can include health insurance. Currently an existing ordinance exempts health and life insurance, and annuity. The council considered raising the insurance tax rate from nine to 11 percent, exempting only worker’s compensation.
However, given that the city had only been collecting the insurance tax on property, a decision was made to begin collecting the nine percent on other insurance besides property for the time being. There is no accurate projection on how much revenue this will yield for the city, but council believed there was a possibility it could remedy certain issues without a technical increase in taxes.
Insurance taxes of this nature are paid directly by insurance companies and not those they insure. The insurance company does however have the option to raise their rates to offset the added expense, though this is not guaranteed to happen.
Council also voted to continue operating based upon last year’s budget until the budget for the upcoming year was recalculated and several items were addressed.
In other business, council discussed the multiple day business licenses for individuals selling within the city limits. The current ordinance states that anyone selling goods or services within the city limits is required to purchase a license for $100. Vendors do have the option of purchasing a daily license, typically at $15 per day or $25 with electric, but in the case of attending multiple events, the daily fees would exceed the overall business license. The city did discuss raising the fee to $50 per day on spots with electrical outlets.
The new schedule of fees is causing concern with many vendors who set up at events in the city, many of whom do not believe their sales would offset the increased cost. Lisa Messer Conley, who has hosted the popular It’s Fall Yall! Vendor and craft festival in years past, posted on the event’s Facebook page that this year’s event had been cancelled.
“I will not ask vendors to pay extra money or get a business license,” Conley wrote.
Conley wrote that she had created the festival to help nonprofits, churches, school groups, and similar organizations to fundraise and bring people into the City of Olive Hill. It’s Fall Yall! has been cancelled with no plans to reschedule, she said.
There are some differences in fees between a private and a city operated event, and anyone interested in an explanation of the new fees or wishing to purchase a business license should feel free to contact the Olive Hill City Hall.
Contact the writer at charles@cartercountytimes.com
