Tax Proposal in Grayson
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Posted: 9:03 PM Oct 12, 2007
Tax Proposal in Grayson
"Tax" is never a popular word, but for small towns going broke, getting more money from taxpayers may be the only option.
Reporter: Michael Wooten
Email Address: michael.wooten@wsaz.com
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"Tax" is never a popular word, but for small towns going broke, getting more money from taxpayers may be the only option.

A proposal in the works in Grayson is literally the talk of the entire town. The vast majority of the folks we talked with Friday are opposed to this new tax in Grayson and they say it's unfair, but when you dig deeper: the mayor argues it's exactly what other towns are already doing.

Grayson, Kentucky is home to just 3,800 people, but there is a big battle in this small town.

Janie Prince works in town, but lives outside city limits and says giving the city her dollars doesn't make sense.

"I don't think it's fair that we have to pay for things that they're going to have for the city. It’s not benefiting us at all," Janie Prince said.

Mayor George Steele says a 1.1 million dollar budget isn't enough to pay for better parks, sidewalk and street repair, and more pay for police and city workers.

"If we don't generate more revenue, we're not going to have a town in Grayson, Kentucky. It’s not going to be a town here in 20 years if we don't do something now," Mayor George Steele said.

Grayson would fall in line with other Kentucky towns that already have payroll taxes to pay the bills. In Ohio, cities levy similar taxes on income for people who live and work inside city limits.

In West Virginia, cities cannot tax the money people make. That's because it's against the law, meaning cities like Huntington and Charleston and smaller towns must rely almost solely on taxing businesses.

Back in Grayson Mayor Steele says without this tax his city will go broke.

"I don't want to sit here in this office for four years and have this city to crumble at our feet, which is what it's doing right now,” Mayor Steele said.

This proposed payroll tax is all but certain. It unanimously passed city council this week and the mayor is a big supporter. It will likely go into effect January 1st.

There is some organized opposition. In fact, a petition is circulating through Grayson right now. The mayor hopes this new tax will bring up to $500,000 into the city.


Latest Comments

Posted by: mary on Dec 3, 2007 at 11:24 PM

did you know that the mayor and hos family was no where to be seen saturday!!!!!
Posted by: Only One Voice on Nov 16, 2007 at 01:09 AM

I would like to say that I am opposed to the taxes.I have seen many comments about raising city property taxes.I would agree to a small raise if it would help the city.I look at small city police officers as a starting job, that would lead to something larger in law enforcements. When accepting employment, I was low on the scale, but knew what was expected of me to be promoted and worked toward that goal.Companies are now cutting "fringe" benefits such as family paid health insurance.What I would like to see is more solutions on these comments.Grants are not the answer as they cannot be depended upon year after year.I would like to see the Mayor and City Council work with Robin Webb and Charlie Wallace to see if there is another solution. What about parking meters?I do not know how much that would generate but it would have to help some.Let us not forget that being on state aide and poor is not a crime.I have been blessed and never had to use these benefits.May I never have to!
Posted by: Meeting Attender on Nov 12, 2007 at 06:21 AM

Dear Anonymous, I hate to be the bearer of bad news, but my in laws don't own a business, and aren't even in Grayson for that matter. I'm not sure who you're confusing me with, but your accusations are incorrect.
$310,000,000
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