INDEPENDENCE — Kenton Fiscal Court will lower the county payroll tax, which was raised (but never enforced) in June — but will keep intact the higher maximum salary on which it will be collected.

        Officials said the new measure will raise enough money for a new jail.

        County commissioners Tuesday approved on first reading an ordinance to reduce the tax from 1 percent to 0.85 percent. This would repeal the increase to 1 percent that the county approved in June.

        “It's difficult to estimate,” County Treasurer Ivan Frye said. “I suspect (the new percentage will raise) $5 million (more) a year.”

        The old tax would have raised about $10 million a year.

        Commissioners could give the measure a second and final reading at their Nov. 8 meeting.

        Earlier this year, the county suspended plans to announce a site for and hearings on the proposed $4.3 million jail until the revenue question was resolved.

        County Judge-executive Dick Murgatroyd said Tues day the county needs the extra money because other projects cost about $2.5 million a year in debt service — which he said made building a jail impossible.

        “This county was once flush with cash,” Mr. Murgatroyd said. “We're faced with a corrections problem that's not going away.”

        Currently, Kenton County workers stop paying the payroll tax after they reach $25,000 a year in earnings, meaning they pay a maximum of $212.50 in payroll tax. The new measure would raise the maximum salary subject to the tax to $76,200.

        That means someone who earns $50,000 a year would see payroll taxes rise to $425 a year, and someone who makes $75,000 would pay $637.50.

        Mr. Frye said it's difficult to estimate exactly how much money the county would bring in because there are no accurate income figures available.

        Kenton County has spent nearly 18 months grappling with the jail issue.

        Mr. Murgatroyd said a second goal is to entice high-tech companies to Covington. He hopes city officials consider lowering payroll taxes there.

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