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(Update) Murray-Calloway Chamber Of Commerce Opposes to Proposed Payroll Tax

SERGEY KUZMIN, 123RF STOCK PHOTO

Update: The Calloway County Fiscal Court approved a resolution Tuesday night calling for the city council to place the proposed payroll tax on the ballot in the next general election.  (Details in a new post later tonight) 

  The Murray-Calloway Chamber of Commerce is opposing the proposed city payroll tax. The Chamber issued a release Tuesday that said the majority of their members have concerns over the implementation of the tax, privacy and the accuracy of the estimated amount that will be garnered.

  Chamber President Aaron Dail said there should be more communication between the city council and general public on specific areas. He says small businesses have voiced that a payroll tax could negatively affect their growth.

 

“They’ve said it would hurt their ability to not only be here locally- but to expand their efforts. Because they would have to take a look at cost, and those costs would be measured against future growth.” Dail said.

 

He said there needs to be more communication about what the payroll tax will do and how it will benefit the community. The Chamber's release said there has been $2 million in new tax funds with no economic return. City Council Member Wesley Bolin addressed the issue in a Facebook post where he said the number comes from a confusing part of the 2018 budget. He said $2 million isn't a projected surplus, but the projected general fund reserves amount at the end of the fiscal year, and said the city is budgeted to operate at a $1 million general fund deficit this year.

 

Dail said he recognizes that bringing in more city funding is not an easy issue, but says it shouldn’t be the burden of businesses and workers. In their release, the Chamber said they would prefer an option that "minimizes the impact on discretionary income and consumer spending, while showing an economic return on investment from any future tax increases."

 

There has been a widespread opposition for the tax since its proposal last fall. Murray State President Dr. Bob Davies has said the tax doesn’t assist Murray State in achieving its goals. He said it could specifically harm efforts in offering competitive salaries and has urged finding a different solution to meet the needs of the city.

 

In support of the tax, mayor’s committee chair Dan Miller says it’s only fair that workers pay into the city because they benefit from services like police and fire protection. He said the tax will bring in $4.4 million a year and that the excess revenue will go towards road maintenance and increasing pay for city police. Miller said the city police department loses police officers because the city cannot afford to give them pay raises.

 

The committee will present their argument for the payroll tax at a city council meeting on July 27.

 

Taylor is a recent Murray State University graduate where she studied journalism and history. When she's not reporting for WKMS, she enjoys creative writing and traveling. She loves writing stories that involve diversity, local culture and history, nature and recreation, art and music, and national or local politics. If you have a news tip or idea, shoot her an email at tinman1@murraystate.edu!
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