7/19/11 Millersburg to put new income tax before voters
By Nick Sabo
July 19, 2011
272
SUMMARY: Tax seen as way to make up for loss of state revenues
Millersburg Village Council will make a plea to voters for new revenue in the form of a one half of one percent income tax.
Council voted Monday July 18 to put the income tax before voters in the November general election. The income tax would generate approximately $500,000.
The village currently collects has a one percent income tax on the books that collects $1 million per year.
Council met Monday July 18 to review the 2012 budget, which is facing a projected deficit of $71,000. The income tax was one of several options proposed to deal with dwindling state revenue, Clerk/Treasurer Karen Shaffer said.
?They considered a replacement levy but that would only be a band-aid,? Shaffer said. ?Besides, that is real estate taxes, that will affect the elderly and the disabled.?
Shaffer said council considered a replacement of the village?s current 5 mil levy. The replacement levy would generate an additional $154,000 a year. The levy was first passed in 1979 and can collect tax values no higher than it did when it first came into effect. A replacement levy updates the tax values. The replacement levy would generate a total of $265,960.55.
The village will see an estimated drop in revenue of $75,000 as soon as the state biennial budget comes into effect July 31. Dwindling revenues tied to the economy is also wearing away at the general fund.
If passed in November, the income tax would take effect Jan. 1, 2012. Revenues would be available to the village after the first quarter of the year, Shaffer said.
Solicitor Bob Hines will prepare an ordinance for a future council vote on the income tax, Shaffer said.
Ohio municipalities may levy a one percent income tax without voter approval. Anything higher must go before voters.
