WM City Council split on contentious tax hike
Special session called for this Thursday, Aug. 8 open to public
By DONALD WILBURN
donaldfwilburn@gmail.com
The West Memphis city council is facing a contentious issue regarding the possibility of raising the city’s taxes to pay for what many feel are much-needed improvements.
Two proposed taxes are currently on the table, with one being a temporary tax and the other a permanent tax. The temporary tax of 0.75 percent would pay for various projects including the building and renovation of the original _re station on 7th street, a new police station, swimming facilities, and improvements to drainage and ood control.
The new police station is expected to cost $8,595,000, _re Station renovation is expected to cost $2,295,000, new parks facilities to cost $28,630,00 and draining and ood improvements at $10,310,000 for a total of $49,830,000. The temporary tax, also known as a sunset tax, would expire in seven years if the bond issue passes.
The second proposed tax is a permanent tax of 0.25 percent, which would be needed to repay the bonds for these improvements including the $9 million bond issued for the revitalization of West Memphis Parks.
The total sales tax in West Memphis is currently at 9.75 percent. The city receives 1.5 percent, state gets 6.5 and 1.75 percent is federal. This does not include the infamous “Hamburger Tax” which is 3 percent on hotels and restaurants which means, for example, if you buy groceries at home you will pay 9.75 percent however if you eat out it rises to 12.75 percent. With the proposed increase it would be 10.75 and 13.75 percent respectively.
For comparison, Marion currently has a 1 percent tax on hotels and food and there is a petition to raise the hotel tax to 3 percent while leaving the food tax and local residents untouched.
In order for the proposed taxes to be put on the ballot for a vote in November, it needs a
2/3 vote to pass in the city council. A special session has been scheduled for this Thursday, Aug. 8, at 1 p.m. to discuss the proposed taxes, with a second reading planned and then a third meeting on the 15th for possible passage.
City council member Lorraine Mohammed was quick to point out and clarify that the council is not voting on the passage of the tax hike itself, but only whether or not to include it on the November ballot and to “let the citizens decide”.
See TAX HIKE, page A2 TAX HIKE
From page A1
During the council meeting, council members were divided on whether to fasttrack the ordinances. Those who voted against immediately placing the ordinances on their second readings were Croom, Holt, Catt, and Wheeless, while those in favor were Mondy, Harris, Bruce, Hutchinson, Mohammed, and Murray.
Near the end of the meeting councilperson Helen Harris directly addressed councilman Wayne Croom, who is seen as by many as being fiscally conservative, saying, “Mr. Croom, if you don’t spend nothing you don’t get nothing. You tight.”
Councilman Croom did not appear to disagree with her assessment.
