Scott City postpones vote on telecom tax

~ The city attorney was assigned to look into how a tax might conflict with current city fees.

The Scott City Council was to vote on placing a 5 percent telecommunications tax on the April 4 ballot Tuesday night. But that vote was postponed due to questions about the tax's implementation.

Scott City government has expressed interest in implementing a new business license tax on telecommunication service, which would take effect July 1. On that date, other municipalities will be able to start taxing cellular service providers along with existing taxes on land-line service providers.

Currently municipalities can charge telecommunications companies a maximum of 5 percent on gross receipts for doing business within their borders. However, Scott City attorney Frank Siebert says the city does not currently tax telecommunication businesses.

The city council was to vote on the tax, but Ward 3 Councilman Robert Tyler wondered if the tax would interfere with current fees collected from SBC within the city limits.

Siebert and Mayor Tim Porch said the fees collected from SBC were for the company's use of city rights of way.

Porch also suggested that, while the tax would be good to implement, 5 percent might be too much because the costs will be passed on to consumers.

Siebert was assigned to look into how a tax might conflict with current city fees and discussion was tabled until the Jan. 16 meeting.

In other business:

* The city council accepted a bid of $7,285 from S&S Roofing in Cape Girardeau to replace the roof on one of the city's firehouses. The money will come out of capital improvement funds and the council will vote on a contract for the project at its Jan. 16 meeting.

* Condemnation proceedings on a structure at 123 Cherry St., owned by Amos Eaton, were put on hold until March 1 pending the sale of the property to a party that has expressed interest in its renovation.

msanders@semissourian.com

335-6611, extension 182