Council sets hearing for proposed sales-tax district covering East Gateway and former ACF site

Council on Feb. 24 voted to set a March 24 public hearing on a proposed excise sales-tax increment district that would redirect a portion of new sales-tax revenue from businesses in a defined area back to local projects if the West Virginia Legislature authorizes the district.

City presenter Cathy Barnes described the proposed boundary as extending from 30 First Street through portions of Third and Fifth Avenues, the former ACF and Flint sites, the Fourth Avenue Innovation District and into the central business district. Barnes said the district would not raise the sales tax rate; Huntington’s sales tax is 7%, she said, with the state receiving 6 percentage points and the city receiving 1.

Barnes told council that state law requires 30 days’ notice to establish a hearing and that, under the pro forma projections presented, the state would receive 20% of the increment and the city could see an estimated $21,000,000 of new general-fund sales-tax revenue in the pro forma. She said the district could potentially support approximately $25,000,000 in bonded projects and about $12,000,000 in pay-as-you-go projects, though Barnes emphasized those project lists have not been finalized and would later be identified in an ordinance should the state approve the district.

Barnes and legal counsel John Stump answered questions and left a slide deck with the city clerk for council review. Barnes outlined the next steps: council adoption of a resolution allowing the administration to submit an application to the West Virginia Legislature, legislative approval and the governor’s signature, followed by a council ordinance identifying eligible projects if the authorization is granted.

The administration and finance committee voted to forward the resolution with a favorable recommendation and council approved the hearing by voice vote.