CHARLESTON, W.Va. — Charleston City Manager David Molgaard said increasing the sales tax in Charleston is a sign of the times.
Charleston City Council held a public hearing Monday night on the plan to increase the sales tax by a half percent to help pay down the firefighter and police officer pension debt. The sales tax went from 6 percent to 6.5 percent last year to finance Civic Center renovations.
Molgaard was asked how much is too much when it comes to raising the sales tax.
“I’m not sure there’s a tipping point,” Molgaard told 58WCHS Radio News. “When you go into other communities they have taxes that are equal or more to other states.”
The city manager said most of the home rule cities are proposing raising the sales tax as a revenue source.
“Of the 16 or so new cities going into home rule I believe the majority of them are looking to also do a one cent sales tax. I think it’s the reality of our times,” Molgaard said.
Molgaard said the new half-cent increase in Charleston would fund those pension payments for about 12 years and maybe a little longer.
The next step for the proposal is the state Home Rule Board. Molgaard said the item is on the board’s Oct. 6 agenda. If approved there, the measure would come back to Charleston City Council for two readings and final approval.