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Occupational Tax -- Who? What? Why?

By Heather Bryant Spoon

After reading Mr. Roberts' comments about the Proposed Occupational Tax, I think there are some misconceptions here about how this tax works and whom it will impact. So I thought it was important to point out the who, what, and why behind the Tax as people are weighing both sides of the situation. I also want to take the opportunity to point out the position of our County employees and their families when it comes to wage stagnation, as well as the County's ability to provide services to its citizens.

What?
An "occupational tax", by definition, is essentially a "payroll tax". People who WORK in Adair County, AND receive a W-2 from their employer, even if they don't live here, will also pay this tax. They are essentially paying a little to "work" here... to help maintain the roads and infrastructure that they use, to help pay for the services they use and depend on when they are earning money in Adair County. Likewise, when Adair County residents drive to work in Taylor, Russell, and Marion County, for example, they are giving a percentage of their paycheck to THOSE counties because they WORK in those counties.



For example, if an Adair County resident works in Campbellsville, he pays 1% to the City of Campbellsville and 1% to the County of Taylor - so, 2% to that community for their growth. A portion of his paycheck is being used to help both Campbellsville & Taylor County with their infrastructure, their roads, their wages, their economic development, and their ability to apply for grants,. The same example could have been used for an Adair County resident traveling to Russell Springs to work. In fact, the Russell County Fiscal Court just passed an increase in their County Occupational Tax to move it from 0.75% to 1% because they are feeling the pains of inflation.

Who?
Good, bad, or ugly, the traditional "occupational tax" will only impact the people that receive W-2's from an employer. Just like the City of Columbia who already collects 1% of paychecks in the city limits, the County of Adair will be collecting a proposed 1% from the paycheck of people who are working in Adair County. The retired, fixed-income recipients, etc., will most likely not be impacted as they are not on a payroll. The middle class and working class will, once again, carry the burden for the masses. And that's the only logical group of people to do it...the children and elderly couldn't, and certainly shouldn't, be expected to financially upkeep our community. If the Net Profits portion of this Tax is implemented, then independent contractors, self-employed people, farmers, landlords, etc. will pay 1% of their Net Profits - at tax time. Some have said that they cannot support the occupational tax because it doesn't impact them directly, i.e they don't receive a W-2....well, the Net Profits Tax will provide an avenue for those people to do their part.

Why?
First of all, the free money that Adair County received from the Federal Government due to a horrible pandemic, was a one time thing. It has given a false sense of financial security. One magistrate told me that, "we would be over $500,000 in debt if it weren't for ARPA money." I, personally, would not suggest the county borrow money to make payroll or keep services that weren't absolutely necessary. If we borrowed money to make payroll, how could we pay that money back and make the next payroll without more revenue? Will the County have to lay off people and reduce the services we offer? How would that look to potential industry? This community seems to want jobs and industry; but we have to invest in our community to be ready to support that growth.

The County and its employees - the ones who work for you and me and are paid by local taxpayer dollars - are trying to make ends meet, too. Don't forget, the County is an employer, not just a governmental agency that services its constituents. The offices and departments that support our County have employees that deserve to make a competitive wage. The County has equipment that must be maintained and replaced, when needed. The County offices, buildings, and vehicles are experiencing a higher cost of utilities, fuel, and raw materials used to maintain roads, bridges, etc. The County is not exempt from the same situations that you and I are facing. Yet citizens want the same level of services, and in some cases, they want and expect more. Additionally, the County has no money set aside for emergencies, if they arise. That is not responsible, in my opinion. Yes, the government usually helps us if a major event happens; but big government monies don't come overnight. We must spend the money up front, and then hope to have good enough documentation to support reimbursement, which may or may not be a 100%. Gambling with whether we could aid our citizens in the event of an emergency is not responsible, in my opinion. I have heard so many people say, "Why can't Adair County have ______ like other counties? Why can't Adair County get jobs?" The answer is: Because we don't have the money.

The Jail & Home Incarceration:
The County would LOVE to fix this problem. The County is obligated, by law, to take in people who are arrested by law enforcement. We don't have a choice. When we house them, it costs money to care for them. Furthermore, if we had to transport our prisoners to another county (versus having our own jail), we'd have to pay THAT county to house them - plus the cost of a jailer's salary, deputies/drivers, the vehicles to transport, and the fuel to drive them there, etc. Other counties will charge us more to house our criminals than it costs us to keep them here. Caring for the incarcerated is not our choice; it's a burden every county must bear. This problem is very complex, I've learned. The age of our jail is something we can't fix, and the "powers that be" will only allow X amount of dollars to be spent on it. How much money do we actually want to throw at a building that has no future? If you have an innovative idea to help in this area, please contact the Judge's office. He's not one to turn down the input of those who want to help solve problems.

The Judge has made a great connection with a new home incarceration system provider. He has met with the Jailer, the Sheriff, the Circuit and District Judges, and also offered a presentation to the magistrates about this new, innovative approach to home incarceration that includes therapy services, and 24/7 monitoring of locations and check-ins - all to reduce the financial burden on the County as well as the jail population issue. The Judge is 100% for home incarceration for those that qualify; but the Pre-Trial system must make the recommendation, the District & Circuit Judges must OK the sentence, and the Jailer must own the system. The CJE can only make recommendations to the people who make the ultimate decisions to implement this potential savings for our county.

In closing, I felt like this Tax needed a little more detailed explanation. Adair County can't have it both ways - we can either grow, attract industry, and maintain our community WITH a tax - OR - we can continue to just "get by" WITHOUT a tax. But, this means no rainy-day fund, the continued deterioration of our county roads, the continued loss of an experienced workforce to counties/municipalities that pay more, and minimal hope for larger businesses to locate here. Without another source of dependable revenue, Adair County will continue to wither on the vine. So, please don't just think about your "today"...but think about our children's tomorrow.

-Heather


This story was posted on 2023-03-27 09:35:02
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