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<br />:00 <br /> <br />TUESDAY <br /> <br />JUNE 7, 1977 <br /> <br />Second, I would like for Mr. West to explain why the utility tax is more <br />discriminatory than the other taxes the City levys. I have heard numerous <br />complaints that the gross receipts tax is unfair because it is not based on <br />profits. I have also heard complaints that the real estate, personal property <br />and sales taxes are unfair because they bear no relationship to income. It <br />seems to me that the claim can be made that virtually all taxes that local <br />governments are allowed to levy are unfair to some extent, and state law <br />prevents local governments from levying an income tax which is probably the <br />fairest tax of all. <br /> <br />Finally, I would like for Mr. West to explain how Council felt about <br />this matter when the tax was unanimously adopted during Mr. West's second year <br />as Mayor. <br /> <br />On June 7, 1974 Mr. Noland sent a memo to Council stating that, at that <br />time, "only four customers would be affected (by the utility tax ceiling) - <br />American Furniture, Memorial Hospital, Pannill Knitting Company and <br />V. M. Draper Manufacturing Company." <br /> <br />Even though Mr. Noland specifically mentioned V. M. Draper Manufacturing <br />Company at that time, the tax passed unanimously with apparently no discussion <br />of the tax being discriminatory. Yet, now, three years later, when 17 large <br />power users are affected by the utility tax ceiling either monthly or almost <br />every month, Mr. West questions the fairness of the tax. I don't understand <br />why this was not discussed in June of 1974 when the tax was passed, nor do I <br />understand specifically what Mr. West wants to do about it now. <br /> <br />Council was adjourned. <br /> <br />2<~e/v~~o~ <br />W. H. y~, Clerk of Council <br /> <br />''"'' <br />