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Despite an auditor’s suggestion that the city begin collecting a controversial net-profit tax on local businesses, Owenton Mayor Doug West doubts the move will gain any traction with the Owenton City Council.
The tax was dropped from the city’s books in early 2011 after some local business owners said they were not aware of the tax.
The 1-percent levy on net profit from businesses conducted in the city by a resident or a nonresidential business entity was established under former Owenton Mayor David “Milkweed” Wotier.
At the Owenton City Council’s Feb. 5 meeting, Paul Maddox of the city’s auditor, Maddox & Associates CPA Inc. suggested the council look at re-enacting the net profit tax.
West said all cities have a net profit tax and that it could generate $30,000-$35,000, but West said he doubted the net-profit tax would pass city council a second time.
“I’ll bring it up again,” West said. “But I don’t see it happening.”
There are some exceptions to the tax, including any bank, trust company, combined bank and trust company, banking and title insurance companies, any compensation received by members of the Kentucky National Guard for active duty training, compensation received by precinct workers for election training or work at election booths and public service corporations.
Maddox presented the council with its yearly audit report. The council was issued a “clean opinion,” meaning there were no material weaknesses found.
In other city council news, the council also voted to reappoint David Lilly as Owenton fire chief.