Boyd County, Ky.'s payroll tax may not cost the city after all, but it looks like it will still cost the Ironton residents who work there.

When it went into effect July 1, it was believed that Boyd County's 1-percent payroll tax would cost Ironton more than $65,000 a year because city residents who work in Boyd County would pay that tax instead of Ironton's 1-percent income tax.

Now, it appears these individuals will have to pay both.

Shawn Hale, payroll tax administrator for Boyd County, said that there are no plans to remove the tax on and that essentially any Ironton residents working in the county will have to pay both 1-percent taxes.

"Basically, they are not going to lift the tax from those individuals," Hale said. "They still have to pay it because those individuals are taking away jobs from Boyd County."

Hale said part of the reason for not removing the tax is because it is considered a payroll tax, meaning that it only applies to people who work in the county. Individuals who live there but work elsewhere do not pay it.

"It wouldn't be fair that the people in Boyd County pay the tax when the people from Ironton don't have to," Hale said.

Jim Hannon, an employee at Marathon Ashland Petroleum's refinery, said he does not mind paying both if it is absolutely necessary but that it doesn't seem right on Boyd County's part.

"I just don't want to pay taxes twice. I would rather pay where I live, not where I work. That is the way it should be," Hannon said. "I don't see how I'm reaping any benefits from Boyd County dipping into my pocket."

Normally, employees pay an income tax where they work, but if there is not a tax there, they it pay where they live.

A few large employers in Kentucky such as Ashland Oil Inc., AK Steel, the Big Sandy Electric Plant and the federal prison employ many Ironton residents.

A reciprocal agreement in the city's income tax ordinance made it appear the city would have to honor this new tax by forfeiting its 1-percent tax on individuals working in Boyd County.

However, it was announced earlier this month that the city attorneys had reviewed this reciprocal agreement again and realized that it does not apply because Boyd County is not a municipality.

City Finance Director Cindy Anderson said that this interpretation and the current city and state law mandates that she collect the 1-percent income tax.

Although it is unfortunate that these individuals will have to pay two taxes, Anderson said this is not uncommon across the state. To keep the city from collecting its part, council would have to vote to change the current ordinance.

Ironton Councilman Brent Pyles said that the real key is to keep the jobs at home in Ironton.

"The Boyd County tax is an issue for Boyd County. If someone works in Huntington they pay a fee in Huntington," he said. "It is unfortunate that you get double taxed, if you want to call it that. We had our tax long before Boyd County and I don't know of any plans to change it because of that fee."

Mayor Bob Cleary agreed that it is more of an issue with Boyd County and said he may do some research into the issue.

"I think some attorneys should look into the Kentucky side," he said. "The Ohio Revised Code says how our side operates. I don't want to see anyone pay more taxes."