City council to vote on proposal to cut business tax
Butler City Council will vote Thursday on a plan to reduce the business privilege tax on new businesses in an effort to attract more businesses by expanding its tax abatement program.
The city’s 7-mill business privilege tax on gross receipts is the highest in the state.
The plan to be voted on calls for three years of tax abatement: 100 percent exempted the first year, 75 percent exempted the second year and 50 percent exempted the third year, then full payments thereafter.
Currently, new businesses are eligible for two years of tax abatement: 50 percent of tax payments exempted the first year and 25 percent exempted the second year. Then there is full payments at the 7-mill tax rate thereafter.
“It’s not a perfect solution, but at least it’s a step to help,” said Mayor Maggie Stock at Tuesday night’s council meeting.
