Proposals for taxes rejected


Tuesday, 12 April 2005


By BRANDI BARHITE
brandibarhite@sanduskyregister.com

SANDUSKY - Much to the surprise of City Manager Mike Will, the city will not expand its admission tax, or raise the dock tax.

Commissioners on Monday voted against the manager's proposal to expand the 3 percent admission tax to include campgrounds and ferries and gradually increase the marina dock tax from $10 to $25.

Commissioner Dave Waddington said he is not going to "run every tourist tax dollar out of Sandusky."

The admission tax proposal was rejected with Vice Mayor Dan Kaman and Commissioners Dannie Edmon and Brett Fuqua voting against it. The dock tax died for lack of majority after Kaman abstained because he owns boathouses, and only ex officio Mayor Mike Kresser and commissioners Suanne Brown and Leroy Sizemore voted in favor of it.

Fuqua said Monday he supports the taxes, but doesn't like the timing. He said the companies have to have time to build the taxes into their prices so they can pass it onto the consumer.

With the tourist season almost here, the city should impose these taxes next year, he said. If approved, the admission tax and the first $5 increase to the dock tax would have gone into effect May 1.

Will said he doesn't know how he will proceed in generating money for the city's strategic plan, but said commissioners still have to consider eliminating the income tax credit. If the income tax credit is eliminated, the city will generate an estimated $220,000 annually.

The new proposal comes three months after Will's original proposal received unfavorable response from the community and commissioner members.

Will had thought his newest proposal was more broad-based, which Cedar Point officials have said they could support.

Originally, Will had proposed that commission could generate $1.2 million in new taxes by expanding the admission tax to include marinas, campgrounds, non-profits and paid parking, and increasing the tax to 3.75 percent.

Under his newest plan, the $330,000 generated annually would pay for projects like developing blighted properties within city limits, putting in a beach at Lions Park and possibly relocating to city hall.

During Monday's meeting, Ruth Smith with the Goodtime ferry boat urged commissioners to vote against taxing ferries this year because she has already set her prices and has contracts with customers she can't change.

Cedar Point spokesman Robin Innes said that the park hopes that the city's existing tax structure is suffice for the city's needs, and that any future tax proposals will take into consideration that Cedar Point already pays more than its fair share of taxes.

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