PERRYVILLE - Perryville City Council is considering raising the municipal insurance tax rate from 5 to 10 percent.
At its regular meeting Thursday, the council heard from Mayor Bruce Richardson that a 5 percent increase would generate an additional $36,000 yearly for the city. The council first discussed the issue in November, and Richardson said then the increase to 10 percent would bring the city more in line with rates in surrounding communities. The tax is paid by insurance companies on premiums received for customers inside Perryville city limits.
The council plans to hold first reading of the ordinance Feb. 5, then adopt the measure at a special meeting later that month. To go into effect July 1, the measure must be adopted by March.
Julie Clay joined the council after accepting an appointment from Richardson. Clay fills a vacancy created when former council member Carol Reed decided not to run for reelection in November.