City to Consider Commuter Tax | Jackson Free Press | Jackson, MS

City to Consider Commuter Tax

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Ward 2 Councilman Chokwe Lumumba supports a proposal for a commuter tax.

Read the 2008 Census Report on commuter data.

City Councilman Kenneth Stokes is pushing for a tax on the roughly 72,000 workers who commute to Jackson from the suburbs. Stokes' proposal was on today's City Council agenda, but he held the vote for council's next meeting.

Stokes said that he is debating whether the tax should come out of a commuter's paycheck or directly from their employer.

Stokes' council colleague, Chokwe Lumumba, of Ward 2, said yesterday that he would support a tax on commuters.

"The big issue is that people use the city of Jackson's facilities and roads, sometimes water supply and a number of other things, and they don't pay for them," Lumumba told the Jackson Free Press. "That's one thing when you've got a tourist coming in. It's another thing when you have people who do it every day. It seems like there should be an obligation."

Of the 111,570 people whose primary jobs are in Jackson's city limits, 72,686, or 65 percent, live outside the city, according to 2008 U.S. Census data. Madison County is home to 12 percent of those working in Jackson, and Rankin County supplies another 16.3 percent of the city's labor force.

Commuter taxes are an appealing revenue source for cash-strapped municipalities, but they rarely garner enough regional support to take effect. During budget meetings this May, local officials in Washington, D.C., supported a tax on the large number of commuters from suburban Maryland and Virginia. The measure depends on approval from Congress where district residents have no voter representation and few allies. New York City has also weighed reinstating the tax had assessed until 1999, when the New York state legislature repealed it.

Municipalities usually assess commuter taxes by deducting a percentage from the paychecks of workers who live outside the city.

Like other cities, Jackson would need to earn legislative approval to enact a local tax. Last year, the legislature authorized a 1-percent sales tax increase to support public safety and infrastructure but created a commission to oversee the spending of tax revenue. The additional controls led city leaders to decline the tax option. Lumumba conceded that it was unlikely that the Legislature would approve a tax that Jackson assessed on residents of other municipalities.

"Of course the Legislature has to ... break ice on it before what we would do would be effective," Lumumba said. "But I think we should send a message to the Legislature that that's what we want."

City spokesman Chris Mims declined to comment on Stokes' proposal.

Duane O'Neill, president of the Greater Jackson Chamber Partnership, which represents businesses across the Jackson metro area, said that an additional commuter tax could function as an incentive for businesses to leave Jackson.

"Right or wrong, I think you would have another argument as to why somebody should have their business elsewhere," O'Neill said.

The Chamber has considered a sales tax drawn from the entire metro region, which would be more palatable to suburbs.

"We're not an organization that usually likes any type of tax, but at the same time, if there was some type of regional sales tax, not just one city but everybody could benefit," O'Neill said. "That would seem to make more sense than one that's just applied to one city or a commuter tax from one city on the rest of the area."

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