It was another meeting of intense debate and discussion between county and local business leaders regarding the recently passed occupational tax ordinance and the possibility of instituting a net profits cap on businesses in the county at last Monday’s regular meeting of the fiscal court.

Judge/Executive Gary Robertson presented the magistrates a list of counties and their payroll tax information as well as whether or not each county had any type of cap.

At a special call meeting late last month the court agreed that they needed some more information on how net profits caps work and despite no action being taken last Monday on the issue, magistrates and Robertson heard from several members of the audience who were displeased with the court’s recent actions, including several local business owners.

Stephens Pipe & Steel owner Terry Stephens, Superior Battery owner Randy Hart, Bennett’s Carpets owner Ivan Bennett and Premier Integrity Solutions owner Brian Walters each spoke against the net profits cap, which would allow the court to bring in a portion of the company’s profits for tax purposes.

Stephens again questioned the court as to why they needed the extra revenue from the payroll tax and potential net profits tax to begin with.

“I’ve asked you at least a dozen times to tell me how much equipment you need and I’ve never gotten an answer,” Stephens said. Stephens also questioned the jail budget of $197,000, saying the county would receive a substantial amount more than what they were projecting. He again told the court that the community was sold on the aspect that the jail would be able to sustain itself once it was built and that he thought it could.

Stephens said the recent tax amendment was passed with “no justification” as to why the county needed such an amount.

“This court did not ask the hard questions as to why you need this money and now here you are back again,” he said. “How dare this court take money that it doesn’t take to operate this county. This is the most insulting thing, it’s a shame.”

Hart, who said he agreed with Stephens, told the court that the county should be run like a business, because, in essence, that is all it is.

He asked the court to do “due diligence” when spending county money that it has brought in from such taxes.

Also at the meeting was Gene Royalty, the executive director of the Russell County Industrial Development Authority, who said it was his advice to the court to make sure and keep local companies happy as they provide a good portion of their revenue to the county through taxes.

He said the county’s seven manufacturing companies employ more than 1,800 people and have a payroll of more than $50 million per year. Royalty pointed out that if the county was to attain new industries, they would be concerned with payroll tax numbers as well as what the attitude is toward business and industry in the community.

Before passing the payroll tax raise last month the county was looking at a budget shortfall of approximately $191,000 for the current fiscal year due to operational costs that include the 911 dispatch, funding to the financially struggling EMS and paying other counties to keep local inmates for several months during the closure of the old Russell County Jail as well as “unforeseen circumstances” on the new detention center.

The passed one percent occupational tax is estimated to bring in about $1.652 million in revenue to the county, up from the $440,000 that the .25 percent tax will provide for fiscal year 2010-11.

Before passage of the payroll tax increase, the county was projected to have a deficit of $1.254 million for the next fiscal year. This number does not include any loan repayment the county will have to receive to make it through this fiscal year, nor does it take into account rising fuel prices or other unforeseen expenses, including replacement of county equipment imperative in effectively functioning as a county.

Stephens said using his calculations he only saw where the county needed $800,000 or so to purchase one time expense, needed equipment and to cover other financial obligations and did not need the full $1.652 million the new tax will bring in.