LOWEST RATES IN REGION
Westerville, Pickerington may seek tax increases
Wednesday, May 21, 2008 3:10 AM
By Jim Woods and Dean Narciso
THE COLUMBUS DISPATCH
Pickerington and Westerville, which have the lowest city income-tax rates in central Ohio, might ask for increases on the November ballot.
Pickerington has not raised its income tax since imposing a 1 percent rate in 1976. City Council members will discuss options tonight for a combination of an increase to 2 percent and credits for income taxes paid elsewhere.
Westerville is considering an increase to 2 percent, similar to a request that voters defeated in November 2006. Residents pay 1.25 percent.
Councils in both cities must decide by Aug. 21 whether to place their requests on the ballot.
In both cities, officials plan to sell the tax as an increase that a majority of residents would not pay.
Pickerington estimates that 87 percent of its residents work outside the city, while 67 percent of Westerville's workers earn wages outside the suburb. Both cities give partial credit for taxes paid elsewhere.
Rising gas prices are increasing the pressures of running Pickerington's government. The city has had a hiring freeze in place since last summer, and no roads will be paved for the second consecutive year, said City Manager Tim Hansley.
In the past few years, Pickerington has gotten by on impact fees from new houses and residents who have moved into the city.
''Frankly, those days are over,'' Hansley said.
The city generates $4.1 million with its 1 percent income tax. The city grants a 0.5 percent credit to residents who work and pay municipal income taxes elsewhere. So someone who lives in Pickerington and works in Columbus pays a total of 2.5 percent in city income taxes.
That probably wouldn't change, even if Pickerington increased its rate, because officials also propose to boost the credit. Although the city's tax would double, the city would take in only $6 million because of the credits.
Westerville officials say that to maintain the high level of service that residents expect, the city must ask voters again for a tax increase that would raise $10 million more annually.
Most of Westerville's neighborhoods were built 20 to 40 years ago, and streets are showing signs of wear, said Scott McAfee, city spokesman. City officials estimate that they need $3.5 million to $4 million a year to bring roads up to an acceptable condition.
Residents who now work and pay taxes in another city still must pay 0.3 percent to Westerville. So someone who works in Columbus and lives in Westerville pays 2.3 percent in city income taxes.
Westerville's proposal would do away with its 0.3 percent tax on residents who already pay 2 percent to another community.
jwoods@dispatch.com
dnarciso@dispatch.com
Westerville, Pickerington may seek tax increases
Wednesday, May 21, 2008 3:10 AM
By Jim Woods and Dean Narciso
THE COLUMBUS DISPATCH
Pickerington and Westerville, which have the lowest city income-tax rates in central Ohio, might ask for increases on the November ballot.
Pickerington has not raised its income tax since imposing a 1 percent rate in 1976. City Council members will discuss options tonight for a combination of an increase to 2 percent and credits for income taxes paid elsewhere.
Westerville is considering an increase to 2 percent, similar to a request that voters defeated in November 2006. Residents pay 1.25 percent.
Councils in both cities must decide by Aug. 21 whether to place their requests on the ballot.
In both cities, officials plan to sell the tax as an increase that a majority of residents would not pay.
Pickerington estimates that 87 percent of its residents work outside the city, while 67 percent of Westerville's workers earn wages outside the suburb. Both cities give partial credit for taxes paid elsewhere.
Rising gas prices are increasing the pressures of running Pickerington's government. The city has had a hiring freeze in place since last summer, and no roads will be paved for the second consecutive year, said City Manager Tim Hansley.
In the past few years, Pickerington has gotten by on impact fees from new houses and residents who have moved into the city.
''Frankly, those days are over,'' Hansley said.
The city generates $4.1 million with its 1 percent income tax. The city grants a 0.5 percent credit to residents who work and pay municipal income taxes elsewhere. So someone who lives in Pickerington and works in Columbus pays a total of 2.5 percent in city income taxes.
That probably wouldn't change, even if Pickerington increased its rate, because officials also propose to boost the credit. Although the city's tax would double, the city would take in only $6 million because of the credits.
Westerville officials say that to maintain the high level of service that residents expect, the city must ask voters again for a tax increase that would raise $10 million more annually.
Most of Westerville's neighborhoods were built 20 to 40 years ago, and streets are showing signs of wear, said Scott McAfee, city spokesman. City officials estimate that they need $3.5 million to $4 million a year to bring roads up to an acceptable condition.
Residents who now work and pay taxes in another city still must pay 0.3 percent to Westerville. So someone who works in Columbus and lives in Westerville pays 2.3 percent in city income taxes.
Westerville's proposal would do away with its 0.3 percent tax on residents who already pay 2 percent to another community.
jwoods@dispatch.com
dnarciso@dispatch.com
