Bill would allow Somerset to collect restaurant tax

News Live

February 1, 2012

By HEATHER TOMLINSON, CJ Staff Writer Commonwealth Journal The Commonwealth Journal Wed Feb 01, 2012, 07:00 AM EST

Somerset —

City of Somerset officials have big plans to get a piece of the revenue pie should a proposed bill that would open up the restaurant tax option to all cities make its way through legislation.

But first, some changes would have to be made.

“We need to be prepared to get what we need,” said Somerset Mayor Eddie Girdler on Tuesday.

Girdler, during a workshop meeting held on Jan. 17, told councilors that the city should prepare to take advantage of the possibility of a restaurant tax becoming a viable revenue option for Somerset.

“It’d be up each local community to do that (establish the tax),” Girdler said Tuesday.

Girdler said a bill has been introduced that would allow all classes of cities to establish restaurant taxes as sources of revenue. Currently, only fourth- and fifth-class cities are given the option to enact a restaurant tax.

Somerset is a third-class city with a population of more than 11,000 people.

Burnside, located south of Somerset, obtains revenue through a restaurant tax that goes directly into its tourism board to be used for economic development in the area. Burnside’s restaurant tax brought in $128,592 in 2011, according to city officials there.

Although there isn’t a comparison now, it can be noted that Somerset can claim a significantly higher number of restaurants in its city limits than its neighbor to the south.

“We’ve never taken advantage of the millions of tourists that come here,” Girdler said.

Girdler said the current regulation stands because legislators believed that cities with larger populations could obtain revenue through a variety of resources, including through hotel and motel taxes.

The smaller cities, then, were allowed to expand their limited revenue options by enacting restaurant taxes.

The only catch, though, would come through the use of that revenue should a restaurant tax in Somerset’s city limits be established. By law, the tax revenue would be split between the city and the local tourism and travel commission. Here, that’s the Somerset-Pulaski County Convention and Visitors Bureau — an organization Girdler says the city has little interaction with.

“It’s unbelievable that a third class city does not formally participate in a tourist and travel commission or have our own,” Girdler told the councilors during the workshop.

Girdler said the city would be remiss if it were to establish the tax, only to watch it go to the county and not back into the city’s fund.

“It doesn’t make any sense,” Girdler told the councilors during the workshop. “We’re the ones that generate the dollars, we’re the ones who provide all the services, but yet an essential part of economic development, we’re excluded.”

Girdler suggested to city councilors that the city must form either a joint tourism and travel bureau with the county or form one individually if the city is to take advantage of the possible future revenue.

“I’d prefer us to have a joint one with the county,” Girdler said on Tuesday.

No matter the means, Girdler said Somerset must be ready to take advantage and make good use of the possible revenue.

“We think we, as a third-class city, should take that money and reinvest it in economic development,” Girdler said. “We need a mechanism to do that and that’s what I’m after.”

City councilors mostly had general questions during the workshop about the possible future tax revenue — and the city’s next step in taking advantage of it.

Councilor Jim Rutherford, Ward 1, noted that he has hesitations in establishing a restaurant tax if it results in a significant increase on local restaurant prices.

“It’s not our money,” Rutherford said. “It’s the people’s money.”

Rutherford said the idea of gaining more revenue through tourism is a good one, but he said tourist season isn’t year-round. And he said that the city would still effectively be taxing its own residents.

“We’re not taxing tourists,” Rutherford said. “We’re taxing ourselves.”

Text Only

News Live

Local man airlifted after two-vehicle crash
May 25, 2012 1 Photo
Mopar Mania to highlight Cruise
May 25, 2012 1 Photo
‘Dry’ forces concerned about wet signs
May 25, 2012 1 Photo
Visitors rave about beauty of Lake Cumberland in May
May 24, 2012 1 Photo
Pulaski’s Memorial Day weekend to be packed
May 24, 2012 1 Photo
Locally-born Rotary leader Pigman dies at 78
May 24, 2012
Technology summit gets underway
May 24, 2012 1 Photo
Local Democrats diss Obama
May 23, 2012
Floyd edges incumbent in city council run-off
May 23, 2012
Pulaski carries Girdler to win

In the weeks leading up to Tuesday’s primary election, it was impossible to miss the colorful signs dotting nearly every Pulaski roadway. The names in the race for the 15th State Senatorial District seat popped out: A.C. Donahue. Chris Girdler. Mark Polston.

Once citizens hit the ballots, however, the results mirrored the dimensions of the signs themselves: Chris Girdler stood the tallest.

Girdler, deputy district director for Congressman Harold “Hal” Rogers, ran away with the votes inside Pulaski County’s borders, earning 3,926 votes for 62.05 percent of the total number cast.

That number more than doubled the next highest vote-getter, businessman Mark Polston, who raked in 1,624 votes for 25.67 percent.

However, Polston — who owns Classic Carpet, a home-flooring business located just off the southern 914 bypass — can claim a moral victory ... three of them, in fact. In all three counties in the district other than Pulaski — those being Adair, Casey, and Russell Counties — Polston actually edged out Girdler.

In Adair, Polston beat Girdler 629 to 394. In Casey County, it was 538 to 417, and in Russell, it was 1,862 to 1,038.

Polston said he just “couldn’t pull it out with the numbers” and that “the machine worked for” Girdler in Pulaski County.

“I think that was their strategy — I think they had a Pulaski County strategy all along,” said Polston. “They played the political game well.”

Polston said the difference between his and Girdler’s campaigns was that “mine was a very, very grass roots campaign,” he said. “I did not have a political machine behind me. I understand how this process works, and in this instance, he prevailed.”

As for why Girdler didn’t take three of four counties, the winning candidate — since there are no Democrats in the race, winning the Republican primary was effectively a final victory for Girdler — said he didn’t have an answer for that.

However, “I believe things happen for a reason and I hope the long and strenuous campaign will only heighten my desire to move beyond the bitterness and partisanship of the recent past,” said Girdler.

“Regionalism is a goal of mine, and I look forward to helping all four counties,” he added, noting that he campaigned heavily in each of them.

Sen. Vernie McGaha, the long-time state senator whose seat the candidates were vying for, actually supported Polston after Liberty’s Todd Hoskins dropped out of the race earlier this month.

Donahue, a local attorney, got 556 votes in Pulaski County, 8.79 percent of the vote. He only received 145 votes in Russell County, 74 in Adair County, and 75 in Casey County, where hometown candidate Hoskins almost matched him with 71 votes despite no longer being officially in the race.

Polston said he’s “still digesting” what happened, and though “the process has been a very good experience for me,” he wouldn’t commit to running again in the future. “I wouldn’t shut the door to anything, but I’m not opening any doors either.”

Still, “I think I got a lot of people involved in the process that had not been involved before and would not have been otherwise,” he said. “A lot of people got out and worked really hard, got motivated to talk to friends and neighbors. I think a lot of people became involved through this campaign that are going to be involved for a long time.”

Girdler stressed his “positive message” and said that Rogers is a “mentor and good friend” that he would turn to for advice in dealing with a frequently combative legislative body in Frankfort, one for which Girdler hopes to help change the culture.

Girdler said that he was “confident and optimistic” during the day Tuesday because he’d “worked extremely hard.” Nevertheless, the realization that he’d won gave him “chill bumps,” he said.

“I’m absolutely honored,” said Girdler. “The position of state senator is more than an honor, more than an office. It’s a charge to keep, and I will give it my all.

“I pledge to be the people’s state senator,” he added. “I look forward to working with everyone to move this region forward.”

May 22, 2012 1 Photo
More News Live Headlines

News Live

Search Results

Bill would allow Somerset to collect restaurant tax

Site Map