VP of steel co. plans to file suit over city's tax

HUNTINGTON -- The vice president of Steel of West Virginia says he plans to file a lawsuit this week to stop the city of Huntington from implementing its 1 percent occupation tax.

John O'Connor told The State Journal on Monday that he will file a lawsuit in Kanawha County Circuit Court on Wednesday.

O'Connor said there also will be a rally Wednesday afternoon in front of Huntington City Hall, protesting the tax.

Plaintiffs in the lawsuit, he told the Journal, will include the Cabell County Commission, Cabell Commissioner Bob Bailey, General Teamsters Local Union No. 505 and Service Employees International Union District 1199.

They contend the tax, which takes 1 percent from the paycheck of anyone who works in the city, is unconstitutional.

Last year, Huntington announced its plans to repeal its $3-a-week user fee and replace it with a 1 percent sales tax and a 1 percent occupation tax.

In March, the state Home Rule Board approved the city's proposed tax reform package.

The tax, to take effect July 1, is said to generate $8 million to $11 million.