The City of Clarkson approved changes to their occupational tax rate, which will go into effect this July.
The new rates come as a result of the city’s new classification as a fifth-class city, which allows them to set a percentage tax rate rather than the previous flat rate of $2 per employee per week.
The changes come pursuant to KRS 67.750, and the rate will be set at 1.2 percent. Rates must be payed quarterly by employers.
The council favors the new rate system, which will be income-based. According to the old system, rates were the same for part-time employees as for full-time, and employers were required to pay the same amount for an employee making $10,000 as for one making $100,000.
Employers who do not make the quarterly required payments to the Clarkson City Clerk will face penalties of five percent of the tax due, with a minimum amount of $25 per offense.
In other city business, the council approved revisions to the former and current year budgets.
The 2014-15 fiscal year budget has been approved as the following
Expected Resources - $549,450
Expected Expenses - $529,150
Expected Resources - $210,010
Expected Expenses - $173,365
Municipal Road Fund
Expected Resources - $75,795
Expected Expenses - $75,795
Parks and Recreation
Expected Resources - $90,050
Expected Expenses - $88,000