Scott City officials put new license tax on April ballot

Scott City voters will have the chance to vote on a new municipal telecommunications license tax on this April's ballot.

The Scott City Council voted 5 to 1 Monday night to put a 5 percent tax on gross receipts from telecommunications services to a public vote. The tax would apply to telephone as well as cellular phone services.

The city currently has a 2.5 percent license tax on phone service with service provider SBC. City attorney Frank Siebert previously said he wasn't aware of such a tax, but an ordinance was found that had been passed over from the city of Fornfelt when it was consolidated with Ancell to form Scott City. The original tax was passed in 1949.

If the tax passes it will double the tax rate on telephone service and institute a 5 percent gross receipts tax on cellular service.

Mayor Tim Porch advised the council that any tax would be passed on to consumers, but that a 5 percent tax on phone bills amounts to a relatively small cost. He recommended a rate in the area of 3 percent.

Porch said his interpretation was that the tax would apply to cable TV service, as well. Cable service is already taxed at 5 percent in Scott City.

In other business:

* The city council passed a resolution approving a contract for S&S Roofing in Cape Girardeau to replace the roof on the city's fire station for $7,285.

* The council approved a motion 6 to 0 to change city policy to exclude the use of the city's yard waste dump from those dumping yard waste acquired in commercial operations, such as lawn service companies. Residents can still use the dump.

* The council approved a motion 6 to 0 to start condemnation proceedings on lot 20 in K-R Estates.

* City administrator Ron Eskew announced that MoDOT will take up the engineering duties on the Ramsey Creek Bridge project, instead of contracting the services out to a private company. The city's 20 percent local match won't be needed for the project, but will be kept for other improvements related to the project.

* City attorney Frank Siebert was honored for 25 years as city attorney.