Pickerington OKs higher city income-tax credit for residents
Increase contingent on approval of tax increase
Tuesday, August 5, 2008 11:16 PM
By Jim Woods
THE COLUMBUS DISPATCH
If Pickerington voters decide to raise their city income tax from 1 percent to 2 percent in November, most residents won't pay more.
Tonight, the council approved raising the income-tax credit granted residents up to 1.5 percent for those who pay to another municipality, contingent upon the tax increase being approved.
The council approved putting the tax increase on the Nov. 4 ballot last month.
Pickerington city officials say they need the tax increase because the city is projecting $6 million in deficits over the next five years.
The city, which has one of the lowest income-tax rates in central Ohio, has been depending on fees levied on new houses. The housing industry, however, is at a standstill.
Doubling the income tax would raise $2.7 million more per year. The city's income-tax revenues would climb from $4.2 million to $6.9 million.
Councilmen Michael Sabatino and Brian Sauer opposed tonight's legislation because they would like to see the credit go as high as 2 percent. They both voted against the income-tax increase last month.
Sauer said a council subcommittee that is reviewing how the city could save money has not completed its work. He said it already has discovered ways to possibly save $350,000 a year.
Councilman Brian Wisniewski, though, challenged Sauer and noted that he had not shown specific cuts.
Sabatino said he would have preferred the city asking for an increase to 1.5 percent. If Pickerington granted up to 2 percent in a tax credit, the city would raise $1.4 million per year. That's about the same as an increase from 1 percent to 1.5 percent, according to city figures.
Council members Keith Smith and Jeff Fix said that 85 percent of Pickerington's residents would experience no increase in municipal taxes under the present proposal. Most of the tax increase would be paid by those who work in Pickerington.
Most Pickerington residents work in Columbus, where they pay 2 percent. Pickerington residents are now given a half-percent tax credit, so their total income-tax bill is 2.5 percent.
Under the council's action tonight, a Pickerington resident who works in Columbus would pay the same total rate of 2.5 percent.
Fix said the city needs the money not only to maintain services but to ensure the city pays $30 million worth of capital projects, which include items such as the Diley Road widening.
jwoods@dispatch.com
Increase contingent on approval of tax increase
Tuesday, August 5, 2008 11:16 PM
By Jim Woods
THE COLUMBUS DISPATCH
If Pickerington voters decide to raise their city income tax from 1 percent to 2 percent in November, most residents won't pay more.
Tonight, the council approved raising the income-tax credit granted residents up to 1.5 percent for those who pay to another municipality, contingent upon the tax increase being approved.
The council approved putting the tax increase on the Nov. 4 ballot last month.
Pickerington city officials say they need the tax increase because the city is projecting $6 million in deficits over the next five years.
The city, which has one of the lowest income-tax rates in central Ohio, has been depending on fees levied on new houses. The housing industry, however, is at a standstill.
Doubling the income tax would raise $2.7 million more per year. The city's income-tax revenues would climb from $4.2 million to $6.9 million.
Councilmen Michael Sabatino and Brian Sauer opposed tonight's legislation because they would like to see the credit go as high as 2 percent. They both voted against the income-tax increase last month.
Sauer said a council subcommittee that is reviewing how the city could save money has not completed its work. He said it already has discovered ways to possibly save $350,000 a year.
Councilman Brian Wisniewski, though, challenged Sauer and noted that he had not shown specific cuts.
Sabatino said he would have preferred the city asking for an increase to 1.5 percent. If Pickerington granted up to 2 percent in a tax credit, the city would raise $1.4 million per year. That's about the same as an increase from 1 percent to 1.5 percent, according to city figures.
Council members Keith Smith and Jeff Fix said that 85 percent of Pickerington's residents would experience no increase in municipal taxes under the present proposal. Most of the tax increase would be paid by those who work in Pickerington.
Most Pickerington residents work in Columbus, where they pay 2 percent. Pickerington residents are now given a half-percent tax credit, so their total income-tax bill is 2.5 percent.
Under the council's action tonight, a Pickerington resident who works in Columbus would pay the same total rate of 2.5 percent.
Fix said the city needs the money not only to maintain services but to ensure the city pays $30 million worth of capital projects, which include items such as the Diley Road widening.
jwoods@dispatch.com
