Call to Order

The meeting was called to order at 7:09 PM by Dr. James Werkmeister, Chairperson in the DeWitt Blank Board Room.

Roll Call

Members present: Mr. Bridge, Mr. Raine, Mr. Kapoor, Mr. Leonard, Mr. Gottschalk and Dr. Werkmeister. Also present: Dr. Manley, Ms. Stephenson, Mr. McCausland, and Ms. Siford

Approval of Minutes

Mr. Raines made a motion, seconded by Mr. Leonard to approve the minutes of the October 5, 2006. Motion carried.

Discussion Points

A. EIT versus PIT

Mr. Leonard presented his summary and analysis of EIT versus PIT options under Act 1. Discussion ensued among the committee members on this issue. Members were in consensus that the option of imposing a PIT levy was not an option to consider.

B. Level of Homestead Exclusion

Mr. Leonard presented a grid illustrating the EIT rates that would be imposed at each level of exclusion: maximum, minimum, and middle. Discussion ensued regarding the implications of each level of exclusion.

The consensus of the members was to recommend a minimum homestead exclusion to establish a base. Members felt that any future adjustments in the exclusion amount would be easier to increase than to decrease.

C. Recommendation to the Board

The following ballot question was developed to present to the Board:

“Do you favor imposing an additional 0.8% earned income tax? The revenue generated from the increased tax rate will be used to reduce taxes on qualified residential properties by $838. The current earned income tax rate is 0.5%.”

Formal adoption of this recommendation will not occur until after input is received from the public on November 16, 2006.

Communications Plan

The commission will develop a report to publish and make recommendations to the Board and the public at the Public Hearing. Members felt that the program developed for the hearing and information in the report should be presented in a manner that makes the information easy for taxpayers to understand.

Mr. Leonard volunteered to help develop the communication plan and report for the commission. A draft will be developed and distributed to all commission members for feedback prior to the November 16, 2006 Public Hearing.

Meeting Dates

The next meeting of the commission will be the Public Hearing to be held on November 16, 2006 at 7:00 PM. The meeting will be televised.

Adjournment

Motion was made by Mr.Bridge, seconded by Mr. Kapoor to adjourn the meeting at 8:55 PM.

Respectfully submitted,
L. Douglas McCausland
Acting Recording Secretary