Tax

In my last column, I explained how the government, by funding projects, creates private-sector jobs. In this column, I will explain why private-sector jobs are better than government jobs. The reason is the fourfold return of taxes for private-sector jobs versus a threefold return for jobs within the government. The return is taxes paid back to the government by workers, and in the private sector is the taxes paid by the employer. Those taxes paid back can be reinvested in more projects, perpetuating economic growth.

WASHINGTON (AP) -- President Barack Obama's proposed tax breaks for business sound like ideas that have enjoyed broad Republican backing in the past. But in today's toxic political atmosphere, he's unlikely to get much -- if any -- GOP help. Still, his plans put Republicans on the spot, making it harder for them to say no to legislation they once embraced. In a speech on Wednesday in Cleveland, Obama will ask Congress to let businesses quickly write off 100 percent of their spending on new plants and equipment through 2011.

Faced with a budget deficit and potential property tax increase, the Washington Township (Pa.) Supervisors on Monday scrutinized revenues and expenditures in their proposed 2013 spending plan. The supervisors voted 3-2 to pass a preliminary, $4.7 million budget that includes a 2-mill tax increase. A mill represents $1 of every $1,000 assessed property value. Each mill generates about $129,000 in revenue for the township, which has an overall tax rate of 4.4 mills currently. “This is the first (potential tax increase)

WILLIAMSPORT - The Washington County Commissioners met Tuesday with Williamsport's mayor and Town Council to discuss the town's tax setoff this fiscal year. The tax setoff is a rebate that the county annually gives back to the municipalities for police, parks and road services. It's based on population, assessable tax base and taxable income. Williamsport is to receive $45,778 this fiscal year, up from $42,049 in the last fiscal year.

tarar@herald-mail.com The executive director of a local tourism group has asked the Washington County Commissioners to levy a 6 percent tax on the cost of staying at campgrounds, cabins and recreational vehicle sites. Ben Hart, of the Hagerstown-Washington County Convention and Visitors Bureau, said this week the lodging tax would generate additional money for the county and the Visitors Bureau. Hart said as much at $80,000 to $90,000 would be generated from the tax. The county would receive 55 percent of the tax revenues, while the Visitors Bureau would receive 45 percent, Hart said.

Tax setoffs down By SCOTT BUTKI / Staff Writer The city of Hagerstown and the towns in Washington County will receive an average of 9 percent less in tax setoffs this year for several reasons, including less growth in the municipalities, Washington County officials said. The county last year paid out a total of $1.1 million to Hagerstown and the towns to reimburse them for money spent on police and parks. The county setoff, also known as a tax rebate, partially reimburses municipalities for police, parks and road services they provide.

Copies of the 2008 IRS tax calendar, a Virtual Small Business Tax Workshop DVD and a brochure explaining small business federal tax responsibilities are available at the City of Hagerstown's Office of Economic Development. The materials contain information on general business taxes, Internal Revenue Service and Social Security Administration customer assistance, electronic filing and paying options, retirement plans, business publications and forms, common tax filing dates and federal legal holidays.

WILLIAMSPORT - The Washington County Commissioners met with the Williamsport Town Council briefly Tuesday to discuss the town's tax setoff. Williamsport will receive $51,855, up $458 from the $51,397 it received last fiscal year. It is the fourth-largest amount among nine Washington County municipalities. The tax setoff money partially reimburses municipalities for police, parks and road services. It is calculated based on population, assessable tax base and taxable income.

Ronald L. Bowers' term as administrator for the state's Property Tax Assessment Appeals Boards expires at the end of this month, and while the governor's office said a new appointee will take over those duties July 1, Bowers declined to comment on whether he will be retiring from state employment until he's had some communication from Gov. Robert Ehrlich. "In due respect to the governor's office, it would be inappropriate for me to comment until I have some information," Bowers said Wednesday.

SHARPSBURG - The tax set-off meeting between the Washington County Commissioners and the towns of Sharpsburg and Keedysville seemed to surprise the commissioners this year on two fronts - that there was little in the form of verbal exchange and that representatives from Keedysville did not attend. Sharpsburg is slated to receive $3,871 in 2005, down $105 from the tax setoff amount from last fiscal year. Keedysville will receive $2,699, which is $73 less than it got last fiscal year.

Jonathan Caponigro of Hagerstown said he believes the recent controversy surrounding the IRS and the news that it targeted conservative groups in 2012 is proof that the agency should be closed down. “Too many people are involved in our private taxes,” he said. “When you have too many people involved, things get haywire like they did a few days ago.” Caponigro, 71, suggested that a sales tax replace the income tax at the federal level. On Wednesday, President Obama announced the resignation of acting IRS Commissioner Steven Miller and said that he was angry about what happened.

The Town of Clear Spring's proposed budget for the upcoming fiscal year does not include a property tax increase for residents, but water and sewer rates are slated to increase by 2 percent each, according to town officials. The town's property tax rate, if the budget is finalized as proposed, will maintain the current property tax rate of 28 cents per $100 of assessed value, Town Clerk Juanita K. Grimm said Monday night during the Clear Spring Town Council meeting, at which the proposed budget was reviewed.

The Washington County Board of Commissioners on Tuesday approved the county's proposed 2013-14 fiscal year operating budget of $245.9 million. The budget calls for tax rates to remain the same as last fiscal year, with a real estate tax of 94.8 cents per $100 of assessed property value and an income tax rate of 2.8 percent. In a separate motion, the five commissioners unanimously approved using a little more than $1.1 million of excess General Fund revenues to pay a one-time stipend for all full-time and permanent part-time employees.

The Hagerstown City Council on Tuesday voted 3-1 to introduce an ordinance for a $133,145,831 budget for fiscal 2013-14 that holds the line on real estate taxes and provides for an increase in pay for city employees. Councilmen Lewis C. Metzner, Martin E. Brubaker and Donald F. Munson voted for the budget with Councilwoman Penny Nigh casting the dissenting vote. Councilman Kristin B. Aleshire had left the meeting for another appointment prior to the vote. The budget, which takes effect July 1, will be up for a final vote at next Tuesday's meeting.

Tuscarora School District property owners could face a tax increase to support the district's preliminary 2013-14 budget. On Monday, the school board approved a preliminary budget that calls for a three-fourths of a mill real estate tax increase. A mill represents $1 of every $1,000 assessed property value. The proposed increase would cost the average property owner $14, according to Business Administrator Eric Holtzman. The school board must pass a final budget by June 30. Even with the proposed tax increase, the school board would not be able to balance its revenues and expenditures without dipping into savings.

City of Hagerstown officials expect later this month to approve a balanced budget for fiscal year 2013-14 without raising taxes, but over the next few years that might prove to be extremely challenging financially, some city council members said Thursday. With city property values expected to decrease by about 8 percent in the 2013 triennial reassessment this December, the Hagerstown City Council has been asked by city staff to consider a tax increase in the next budget cycle for fiscal year 2014-15 to account for an anticipated shortfall of about $3.2 million.

As Greencastle-Antrim School Board continues to wrestle with its 2013-14 budget, taxpayers in the school district are facing a possible 2-mill tax increase following a 5-3 vote to pass the proposed final general fund budget on Thursday. Business Manager Jolinda Wilson said combining $500,000 from the fund balance with a 2-mill tax increase won't close up the $505,556 deficit in the $35 million budget. The district has the option of increasing taxes 3.8259 mills, which is the Act 1 Index tax cap, Wilson said.

Police seized 310 cartons of cigarettes from a vehicle that was stopped at a Martinsburg-area Sheetz on Wednesday, according to Berkeley County Magistrate Court documents. Oda Qarqat, 46, of Bogota, N.J., was arraigned Thursday on charges of no operators license and transportation of unstamped cigarettes or tax-not-paid tobacco products by Magistrate Robert L. Lowe II, according to court documents. Qarqat was in Eastern Regional Jail Thursday night on $9,000 bond, according to court and jail records.

The Waynesboro Borough Council has established a tax abatement program designed to stimulate economic development. On Wednesday, the council approved a Local Economic Revitalization Tax Abatement (LERTA) program and a map of eligible commercial and industrial properties. The council's efforts mirror ones in neighboring Washington and Quincy townships. The Waynesboro Area School Board and Franklin County (Pa.) Commissioners will be asked to extend similar tax savings, officials said.

Martinsburg City Council, which met Monday as a committee of the whole, recommended that City Manager Mark Baldwin be authorized to begin the process to apply to become a “home rule” city in West Virginia. Mayor George Karos and city council members received an explanation from City Attorney Floyd M. “Kin” Sayre III about the State Legislature's recent expansion of the home rule pilot program, which now will allow 16 more cities to apply to join four others already participating in the initiative.