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City council holds off vote on tax issue

Butler City Council will wait another month to vote on a possible reduction in the city’s 7-mill business privilege tax for new businesses.

On Tuesday night, council members discussed the issue with Butler Main Street manager Chelynne Curci and Tom Graham, who is on Butler Downtown’s Economic Restructuring Committee.

They all cited a desire to better research their options as the reason to delay the vote, which would extend both the length and the amount of the tax abatement program for new businesses.

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.

In September, council tabled a proposal for three years of business privilege tax abatement.

Now there is a revised version of the tax abatement plan proposed by Butler Downtown, which is seeking five years of tax abatement: 100 percent for each of the first three years, then 50 percent in the fourth and fifth years.

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