KINGWOOD — Kingwood Council took the first step this week to implement a 1 percent municipal sales tax by asking that the enabling ordinance be written.
Council has been considering the tax since Councilwoman Michelle Whetsell brought it up in April. Two weeks ago a representative of the State Tax Department explained how the tax works.
It is collected by businesses in town and by online businesses that ship to the town. The businesses remit the money to the state, which sends it to the town quarterly.
Some purchases are exempt, including prescription drug sales, fuel, sale or use of motor vehicles and satellite TV service.
Two readings of the ordinance and public hearing are required before it becomes effective. It can become effective Jan. 1 or July 1, but not until 180 days after the State Tax Commissioner is notified the ordinance was enacted, the representative said.
Council won’t start receiving checks from the state until the end of the first quarter after this. So the earliest Kingwood could receive the tax is October 2019.
“Whoever I’ve talked to said this is the most fair tax of all,” Recorder Bill Robertson said. He lobbied to have the tax designated for specific uses.
“I think we owe it to them to explain how we plan,” to spend the money, Robertson said.
City attorney Sheila Williams noted that the tax department recommended putting the money in the general fund so it can be used as needed. If a specific purpose is named, it can’t be used for anything else.
“I feel like we’ve done a really good job managing the money we have. I don’t think the public should have any reason to distrust us,” Whetsell said.
In other business, after an executive session, council voted 3-3, with Mayor Jean Guillot breaking the tie to make it 4-3, not to renew Williams’ retainer. Williams’ contract with Kingwood ends Saturday.
Voting for the motion were Josh Fields, Joe Seese and Dick Shaffer. Opposing it were Mike Lipscomb, Robertson and Whetsell.
Williams and some councilmen have disagreed about the speed with which she organized a comprehensive copy of city ordinances.
Williams has been Kingwood’s attorney for 40 years, including 37 consecutive years. Guillot said he had no comment Tuesday night. Williams said her years of service speak for her.
Council also:
- Passed first reading on an amendment to the sidewalk ordinance to require type 2B Portland cement in sidewalks, rather than type 1A.
- Voted to renew its property and liability insurance for a total of $108,515.79, which includes the addition of cyber insurance for $803.38.
- Agreed to pay Automotive Machine Inc., of Maryland, $1,299 for parts to rebuild the motor in a truck used by the city to water the streets.
- Divvied up $28,000 additional funds collected under the excess levy, with $20,000 going to paving and $8,000 to parks and rec.
- Deleted a requirement in the trash ordinance on size of garbage cans. Cans will no longer be required, but trash must be bagged, whether in a can or not. Second reading will be at the next meeting.
