PERRYVILLE - Perryville's city council gave first reading Thursday to an ordinance that would raise the insurance premium tax from 5 to 10 percent.
The increase would offset the loss of revenue caused by the elimination of garbage collection bills, said Mayor Bruce Richardson.
The council will meet in special session at 7 p.m. Feb. 18 to give the measure second reading, and if passed, the increase would go into effect July 1.
Health insurance premiums are exempt from the tax, which comes from the sale of insurance policies in the City of Perryville. The new ordinance supplants the original insurance tax law in Perryville, which was passed in 1981.
Earlier this month, Richardson said research by his office showed an increase to 10 percent would bring the city's rates more in line with surrounding communities.
