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Fleming Fiscal Court compromises on insurance tax
By MARLA TONCRAY
FLEMINGSBURG -- During another packed session of Fleming County Fiscal Court Tuesday morning, taxpayers again voiced their opinions about the proposed 6 percent insurance premium tax.
In the end, they walked away with a compromise of a 3 percent proposed tax instead.
At times during the two and a half hour discussion, the crowd applauded and cheered those who took a stand against the tax as court members fielded questions about estimated revenue from the tax, how it would be applied and how long the tax would be effect.
Court members were expected to vote on the second reading of a proposed ordinance that would institute the insurance tax effective July, 2008, with revenue from the tax making its way into county coffers by October, 2008, but decided to forego the vote after the compromise on the new percentage was voted upon.
The tax has been a topic of discussion at four prior meetings and has come to the surface in light of the county's projected deficit for the 2007-2008 operating year. The deficit has caused magistrates to approve the transfer of $150,000 from the county's capital improvement fund in order to present a balanced budget to state officials for the upcoming fiscal year.
The proposed tax is similar to the one collected from taxpayers within the Flemingsburg city limits. It would be applied to insurance premiums for property, casualty, auto and general liability insurance; health insurance premiums and workers compensation premiums would be exempt. A one-time tax on life insurance premiums will also be included in the tax.
Before opening the floor to discussion, Judge-Executive Larry Foxworthy presented magistrates with an addendum to the insurance premium tax ordinance, which outlined which insurance premiums would not be taxed and exemptions of the tax.
As negotiations progressed, the addendum to the insurance premium tax ordinance was withdrawn from the bargaining table if the 3 percent tax won out over the 6 percent.
As discussion drew to a close and magistrates took a vote to draft a new ordinance instituting a 3 percent tax instead of the 6 percent tax, Foxworthy reminded those present in the audience that they had pushed for the lower tax and said they would understand if it would have to go up to 6 percent if revenue didn't meet the financial needs of the operating budget.
"You remember this day if the court comes back for the additional 3 percent," Foxworthy said.
In other business, the court:
• Approved the second reading of the 2007-2008 proposed budget.
• Approved an amended agreement with Buffalo Trace Gateway Area Narcotics Task Force.
• Delayed a public hearing for road closure at the Hueber-Savey property until June.
• Took no action on the second reading of an ordinance to institute a proposed insurance tax of 6 percent.
• Made no changes to a proposed fee schedule drafted for the Fleming County Archives and Genealogical research office of Caren Prater. The proposed fees will remain intact.
• Reviewed and amended existing subdivision guidelines.
Contact Marla Toncray at 606-564-9091 ext. 275.
Proposed addendum to insurance premium tax ordinance, with proposed 6 percent tax:
No insurance premium tax shall apply to premiums on the following:
• Health insurance or extended care policy
• Workers Compensation Insurance
• Annuities
• Federal flood insurance
• Municipal Bonds
• Crop hail insurance
• Non-licensed farm equipment insurance
• Cargo and product liability insurance
• Physician malpractice insurance
• Life insurance policies will be tax on the first year's premiums only and applied to amount actually collected within first year.
• General liability insurance or portion thereof issued to companies, corporations or businesses with a minimum of five full time employees.
Exemptions:
• Property insurance premiums or risks owned by the county. A structure utilized as churches, places of worship, parsonages and schools whether public, private or church oriented.
• All rural fire departments of Fleming County or combination thereof are exempted from the license fee imposed on insurance premiums.
• The incorporated area of the City of Flemingsburg. All incorporated and unincorporated areas of the county will be taxable.
In the end, they walked away with a compromise of a 3 percent proposed tax instead.
At times during the two and a half hour discussion, the crowd applauded and cheered those who took a stand against the tax as court members fielded questions about estimated revenue from the tax, how it would be applied and how long the tax would be effect.
Court members were expected to vote on the second reading of a proposed ordinance that would institute the insurance tax effective July, 2008, with revenue from the tax making its way into county coffers by October, 2008, but decided to forego the vote after the compromise on the new percentage was voted upon.
The tax has been a topic of discussion at four prior meetings and has come to the surface in light of the county's projected deficit for the 2007-2008 operating year. The deficit has caused magistrates to approve the transfer of $150,000 from the county's capital improvement fund in order to present a balanced budget to state officials for the upcoming fiscal year.
The proposed tax is similar to the one collected from taxpayers within the Flemingsburg city limits. It would be applied to insurance premiums for property, casualty, auto and general liability insurance; health insurance premiums and workers compensation premiums would be exempt. A one-time tax on life insurance premiums will also be included in the tax.
Before opening the floor to discussion, Judge-Executive Larry Foxworthy presented magistrates with an addendum to the insurance premium tax ordinance, which outlined which insurance premiums would not be taxed and exemptions of the tax.
As negotiations progressed, the addendum to the insurance premium tax ordinance was withdrawn from the bargaining table if the 3 percent tax won out over the 6 percent.
As discussion drew to a close and magistrates took a vote to draft a new ordinance instituting a 3 percent tax instead of the 6 percent tax, Foxworthy reminded those present in the audience that they had pushed for the lower tax and said they would understand if it would have to go up to 6 percent if revenue didn't meet the financial needs of the operating budget.
"You remember this day if the court comes back for the additional 3 percent," Foxworthy said.
In other business, the court:
• Approved the second reading of the 2007-2008 proposed budget.
• Approved an amended agreement with Buffalo Trace Gateway Area Narcotics Task Force.
• Delayed a public hearing for road closure at the Hueber-Savey property until June.
• Took no action on the second reading of an ordinance to institute a proposed insurance tax of 6 percent.
• Made no changes to a proposed fee schedule drafted for the Fleming County Archives and Genealogical research office of Caren Prater. The proposed fees will remain intact.
• Reviewed and amended existing subdivision guidelines.
Contact Marla Toncray at 606-564-9091 ext. 275.
Proposed addendum to insurance premium tax ordinance, with proposed 6 percent tax:
No insurance premium tax shall apply to premiums on the following:
• Health insurance or extended care policy
• Workers Compensation Insurance
• Annuities
• Federal flood insurance
• Municipal Bonds
• Crop hail insurance
• Non-licensed farm equipment insurance
• Cargo and product liability insurance
• Physician malpractice insurance
• Life insurance policies will be tax on the first year's premiums only and applied to amount actually collected within first year.
• General liability insurance or portion thereof issued to companies, corporations or businesses with a minimum of five full time employees.
Exemptions:
• Property insurance premiums or risks owned by the county. A structure utilized as churches, places of worship, parsonages and schools whether public, private or church oriented.
• All rural fire departments of Fleming County or combination thereof are exempted from the license fee imposed on insurance premiums.
• The incorporated area of the City of Flemingsburg. All incorporated and unincorporated areas of the county will be taxable.
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