Clinton County Fiscal Court, on a 4-2 vote, took the first in a series of steps that may eventually lead to the county’s Occupational Tax rate going up by .50 cents, from the current .75 percent to a recommended 1.25 percent.

The proposed increase would mean that for every $100 an employee earns, he or she would see a deduction taken from their paycheck in the amount of $1.25.

At the current .75 percent rate, that worker now has .75 taken from their paycheck.

The Occupational Tax issue was the last item of business on the agenda at the regular meeting of the fiscal court last Thursday evening, January 15. All court members were on hand.

Judge/Executive Richard Armstrong, in his first regular meeting since becoming judge earlier this month, recommended the increase, starting the conversation on the issue by saying “all or most of the OT revenue is going to fund the EMS and jail.”

County Treasurer Dallas Sidwell agreed with the judge’s assessment of the county’s financial condition, saying that revenues were going down while (county) government expenses are going up. He said the county is constantly having to transfer money from fund to fund, borrow and pay back, adding there were few ways to get extra revenue.

Sidwell continued by saying the original rate several years ago was sufficient, but the rate at .75 has been the same since 2003. He added it may be easier and less harmful (to taxpayers) to increase the Occupational Tax, and noted about the only other options would be creating an Ambulance Taxing District to solely fund that service, or some type of insurance premium tax that would come from property owners. “We’re in bad shape,” he concluded.

Judge Armstrong said he, or no one, liked to raise taxes, especially on the working middle class, and said he had been trying to decide on an amount of increase he felt wouldn’t be too much of a burden but at the same time create enough revenue to operate the county.

There was then a discussion on rate collection percentage, or those who are actually paying the county’s occupational taxes.

Occupational Tax Administrator Virginia Conner said the collection rate right now was between 70 and 80 percent, but noting that in the past it had been as low as around the 40 percent mark.

It was also noted that she and now Judge Armstrong, have both been working hard to make sure that the county collects the tax and indicated that County Attorney Michael Rains would be sending a lot more letters out to those who are not paying.

The penalties for not paying could be stiff, as the ordinance establishing the tax allows the county to go back and collect up to five years in back taxes owed.

Still, Magistrate Ricky Craig said it was “unbelievable” the ones not paying.

Magistrate Terry Buster said, “I don’t like to raise taxes…no one in this courtroom does, but everyone wants to see the county grow and prosper.”

Judge Armstrong noted without extra revenue, the county couldn’t properly fund the road department, pay employees and maintain other aspects of the county.

Following the discussion, Magistrate Hershell Key made a motion, with Magistrate Johnny Russell seconding, that the occupational tax rate ordinance be amended to increase the current rate from .75 to 1.25 percent. On a roll call vote, the measure passed 4-2 with Key, Russell, Buster and Magistrate Patty Guinn voting yes and Craig and Magistrate Mickey Riddle voting no.

Although the court indeed opted to raise the rate, it is still a work in progress, according to County Attorney Rains, who pointed out that the increase would require an amendment to the current ordinance and further require a first reading, two weeks of publication and, eventually, a second reading and adoption to finalize the move.

An ordinance reflecting the changes in rates is expected to be drawn up and presented to the court for first reading at a later date. No date for first reading was set at last Thursday’s session.