subscribesubscriber servicescontact usabout ussite mapBuy a Classified
Fri, Nov 20 2009 

Published: June 22, 2009 10:25 pm    print this story  

Rail company enters tax fray

Workers claim shops not in Raceland

By MIKE JAMES
The Independent

RACELAND A company employing rail workers at the Raceland Car Shops has entered the legal fight against Raceland’s payroll tax and claims the shops are not inside the city.

Progress Rail Raceland Corp. filed papers in Greenup Circuit Court this month to add itself as a plaintiff in a lawsuit challenging the tax.

The company claims its engineers have reviewed city records and found that boundary maps and survey information show most or all of the car shop is outside city limits.

The outcome of the suit could involve more than the payroll tax.

The company wants the court to decide whether its property is in the city or not. If not, it wants the court to award it repayment of real estate, intangible and other taxes the city has collected since the company bought the property in 2006.

Progress Rail is joining other plaintiffs who are workers there and at CSX and the Raceland Independent School District, the three largest employers in the city.

The original suit, filed in April, claims the payroll tax violates Constitutional due process and equal protection guarantees. The plaintiffs want the court to prohibit the city from collecting the tax and force it to refund what it already has collected.

The payroll tax has been under siege since it was enacted in February. At first it was to be a 2 percent levy. The city council scaled it back to 1 percent after it drew heavy opposition and started collecting May 1.

The city contends Progress Rail is in city limits, city attorney James W. Lyon Jr. said. “And maps we have show they’re in city limits.”

Further, Lyon said, the ordinance addresses employers not based in the city but do business there. In such a case the employer and the city are to negotiate the amount to be withheld.

Lyon said neither Progress Rail nor CSX has been withholding the tax from their employees’ paychecks.

MIKE JAMES can be reached at mjames@dailyindependent.com or at (606) 326-2652.

print this story  



autoconx
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Premier Guide
Premium Jobs

CMT
F/T. Bring resume to Trinity Station Retirement Community, 2121 Argillite Rd., Flatwoods....>MORE

THE GREENUP CO. HEALTH DEPT.
Is accepting applications for a Full Time Local Health Nurse III.

Starting Salary: $15.79 - $19.96/hr negoti
...>MORE

RESIDENTIAL PROPERTY INSPECTOR
Needed. P/T, work own hrs, coverage area Northeast KY, fuel efficient car helpful. Please email resume to robh@insurance...>MORE

See all ads

Premium Cars, RVs and Boats

CADILLAC BROUGHAM
CADILLAC- ‘88 Brougham 51k mi., $4800. Call 606-465-0560....>MORE

FORD ESCAPE
FORD ESCAPE- ‘05 Limited, leather, runs and looks like new, $10,000 obo; ‘00 Ford Focus, red, 5 spd, runs great, $2100. ...>MORE

DODGE CHARGER
‘08, low mi., fac. warranty, white, CD, all power, loaded, exc. shape, extra clean, $12,950. 606-571-2628....>MORE

See all ads

Premium Real Estate

SIX LOTS FOR SALE OR TRADE
Cedar Knoll, Briarwood area 606-547-5764...>MORE

FARM HOUSE FOR SALE
FARM HOUSE-in Greenup Co. 4BR, 1BA, 20 acres, $155K. 606-833-5484. ...>MORE

FLATWOODS HOME FOR SALE
1519 Jonathan St. 3BR, 1BA, totally remodeled, on deadend street. $73,650. Motivated seller! Call (606)571-4258....>MORE

See all ads

Premium Deal of the Day

FIREWOOD FOR SALE
1 Full Rick
Call 606-923-0717
...>MORE

PUPPIES FOR SALE
MIN. PIN. PUPPIES- full stock 1 male $150, 3 females, $175 ea. Yorkie/ Shih Tzu mix, 2 males, $75 ea. 740-379-9176. ...>MORE

See all ads


 

Community Newspaper Holdings, Inc.CNHI Classified Advertising NetworkCNHI News Service
Associated Press content © 2009. All rights reserved. AP content may not be published, broadcast, rewritten or redistributed.
Our site is powered by Zope and our Internet Yellow Pages site is powered by PremierGuide.
Some parts of our site may require you to download the Flash Player Plugin.
View our Privacy Policy
Advertiser index