Daviess County Fiscal Court voted Thursday to postpone the second phase of increased occupational net license fees — which was previously set to take effect on Jan. 1 — to help residents better navigate through the financial hardships brought on by COVID-19.
The occupational net license fees affect both businesses and persons conducting business, occupations and professions within Daviess County. Fiscal Court approved the two-phased increase in June 2019, saying then the tax increase stemmed from less revenue and higher expenses that had taken a toll on the County’s budget.
“We’re paying a $10 million payroll with the recently added two-percent Cost of Living Adjustment and a pension system that’s gone up,” Mattingly said at the time. “Our courtroom security officers haven’t had a pay increase from (Administrative Office of the Courts) and it’s very difficult to keep those positions filled. And now we’re faced with needing new voting machines and a radio system for our fire and law enforcement.”
The first phase of increases took effect on Jan. 1, 2020, raising the occupational net license fee from .35% to .70%. The second phase was set to increase that amount from .70% to 1.00%.
“This ordinance simply revises the existing ordinance on the books,” County Treasurer Jim Hendrix said. “… This ordinance delays that increase (to 1.00%) for a full year so the second phase of the increase will not take place until (Jan. 1, 2020).”
Mattingly said he and the Commissioners discussed delaying the second increase after realizing the negative effects put upon many Daviess County residents and businesses due to COVID-19.
“Because of COVID, we understand the issues folks are suffering from out there — both those who are working by the hour for wages, as well as their employers,” Mattingly said. “This would also affect the net profits tax.”
Despite holding off on the second phase of increases for a full year, Mattingly said he believed Fiscal Court would be in good financial standing.
“I think the treasurer and staff up here has done a good job, and we’re going to be able to manage through and still deliver all the goods and services to the public that we should be giving them,” Mattingly said. “I think delaying them for a year is the proper thing to do.”
