LIBERTY - The City Council voted Wednesday evening to raise the insurance premium tax by 2 percent to help purchase a new fire truck and pay for other needs in the city.
Councilman Mitchell Phillips, who was elected in November, made the motion after the council had discussed the need for a new fire truck and garbage truck. Councilman Steven Brown, also new on the council, seconded the motion and the vote was unanimous.
The move caught Mayor Steve Sweeney by surprise as he was talking about raising the tax from 4 to 6 percent. The 2 percent increase will generate about $60,000 annually for the city coffers.
Increasing the insurance premium tax for the city will mean less tax for the county. County Judge-Executive Ronald Wright said this morning the county rate is 6 percent and currently generates $500,000 from insurance premium tax. However, next year, that amount will decrease by $60,000.