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Wednesday, January 31, 2001

Kenton to defend tax increase




By Ray Schaefer
Enquirer Contributor

        COVINGTON — Kenton County Fiscal Court is expected to respond to a lawsuit challenging an increase in the county payroll tax at its meeting next week.

        Covington and Corporex Cos. sued the county last week in Kenton Circuit Court. They are asking a judge to determine the legality of the increased payroll tax many Kenton County workers now have to pay.

        “We're waiting for the attorney to get back to us,” Judge-executive Dick Murgatroyd said Tuesday. “We're going to defend the action.”

        The meeting begins at 7 p.m. next Tuesday at the county courthouse in Independence.

        Fiscal Court met in executive session Tuesday for nearly 90 minutes with Louisville attorney Sheryl Snyder. Deputy Judge-executive Scott Kimmich said a report is due next week.

        Jimmy Williams, a member of the Covington Collaborate, a group of neighborhood associations, said a ri valry between Covington and Kenton County has existed for at least 30 years.

        “People on the (Covington City) Commission are tired of playing second fiddle,” Mr. Williams said.

        Effective Jan. 1, the county raised the annual payroll tax cap from $25,000 to $80,400, the same level as the Social Security (FICA) cap. The move meant a 220 percent increase for some taxpayers.

        A worker who earns $50,000 per year will see the payroll tax increase from $212.50 to $425 a year. Someone who makes the maximum $80,400 sees a larger jump — from $212.50 to $680.

        At issue in the suit is whether Covington workers and businesses can offset their county tax increase through a credit for taxes paid to Covington.

        Covington and Corporex contend state law entitles local taxpayers to the credit, while county officials say it does not. The county has said the money from the increased tax cap is needed for expansion of the county jail at Third and Court streets.

       



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