Clinton County Fiscal Court has taken another step necessary in making the proposed increase in the county’s occupational license fees a reality by approving the lengthy ordinance amendment on first reading.

The court, at a special session last Thursday morning, January 22, approved the ordinance amendment for the Occupational Tax on first reading with all members on hand for the brief meeting. Once again, the vote to approve was split at 4 to 2 in favor.

The Occupational Tax ordinance amendment was the only item of business on the call meeting agenda with again, Magistrate Hershell Key making the motion to approve. Magistrate Terry Buster seconded the motion and on a roll call vote, the first reading passed with those magistrates, as well as magistrates Patty Guinn and Johnny Russell also voting in favor and once again, magistrates Ricky Craig and Mickey Riddle voting against the measure.

The ordinance, which required an amendment to change the fees, was summarized by County Attorney Michael Rains and the court set Thursday, February 19 at 5 p.m. (the court’s next regular meeting) for second and final reading, and if approved at that time, adoption.

A summarized version of the amended ordinance, by law, will be published twice in the Clinton County News–February 5 and 12 issues–prior to the second reading.

The court began the official process of increasing the rate by .50 cents per $100 gross wages taken out on employees in Clinton County at its regular meeting on January 15.

The court voted 4-2 at that meeting to increase the occupational tax from the current .75 percent rate to a $1.25 percent rate.

The proposed increase would mean that for every $100 an employee earns, they would see a deduction of take home wages in the amount of $1.25 in lieu of .75 cents per $100 earned.

At the initial regular meeting when the vote to increase the tax was taken, it came following the recommendation of Judge/Executive Richard Armstrong, who cited the county’s financial situation and the fact that the majority of the occupational tax revenues now being collected go to help fund the EMS and jail on a continuing basis.

County Treasurer Dallas Sidwell also agreed with the need to increase the rate, noting earlier this month that the initial amount of .75 cents per $100 was sufficient when first enacted, but now the county is having to make monthly transfers and continue to “borrow and pay back” money.

Also during the meeting earlier this month, the issue of occupational tax collection rates were discussed, with some magistrates concerned that many people who were supposed to be paying the taxes weren’t, making it harder on those who do.

It was noted that although collection rates in the past had been as low as 40 to 50 percent, that rate is now up to 70 percent or more and more work is being done to attempt to collect the taxes owed, and possibly adding penalties and collecting back fees of up to five years.

If passed on second reading, the new rates would then be put into effect for employees, with employers having the responsibility to withhold the revised amount.

A complete copy of the ordinance amending the county’s occupational license fee is available for public inspection at the judge/executive’s office during normal business hours.