http://www.news-herald.com/articles/2011/08/27/news/doc4e57bcee17dd0270996547.txt
Richmond Heights considers cutting tax credit
Friday, August 26, 2011By Caitlin Fertal
CFertal@News-Herald.com
Richmond Heights City Council has approved sending a charter amendment to the November ballot that will increase the revenue gained through tax payers by $750,000 annually if passed.
The motion, approved 5-2 this week, would decrease the tax credit from 100 percent to 75 percent, effectively generating the extra revenue through residents who work outside the city, Councilwoman Miesha Wilson Headen said.
Currently, those who live in Richmond Heights but work elsewhere have a 100 percent tax credit, meaning that they do not pay any taxes to Richmond Heights, Council President David H. Roche said, noting that although residents sometimes believe that the Regional Income Tax Agency collects tax dollars for the city, that is not the case.
Headen said she voted against the motion because of the amount of tax increases and fees that the city has seen already.
“Given that (reports) are saying that we are headed back into a recession, and that our unemployment rate is near 10 percent, it just doesn’t make sense to keep passing this tax burden onto our residents.”
In 2007 the city passed a fire levy and in 2010 the millage was increased by 1.1-mill on property taxes. Also in 2010, the city instituted a fee of $125 per household for garbage collection, Headen said.
“The city needs to get its internal controls and policies up to speed in terms of financial soundness before we take a tax increase to the voter,” she said.
Roche voted for the motion, citing decreased state funding as one reason for its necessity.
“We’re pretty much in financial difficulty at the moment,” he said.
If the issue passes, it will go into effect January 2012.
The motion, approved 5-2 this week, would decrease the tax credit from 100 percent to 75 percent, effectively generating the extra revenue through residents who work outside the city, Councilwoman Miesha Wilson Headen said.
Currently, those who live in Richmond Heights but work elsewhere have a 100 percent tax credit, meaning that they do not pay any taxes to Richmond Heights, Council President David H. Roche said, noting that although residents sometimes believe that the Regional Income Tax Agency collects tax dollars for the city, that is not the case.
Headen said she voted against the motion because of the amount of tax increases and fees that the city has seen already.
“Given that (reports) are saying that we are headed back into a recession, and that our unemployment rate is near 10 percent, it just doesn’t make sense to keep passing this tax burden onto our residents.”
In 2007 the city passed a fire levy and in 2010 the millage was increased by 1.1-mill on property taxes. Also in 2010, the city instituted a fee of $125 per household for garbage collection, Headen said.
“The city needs to get its internal controls and policies up to speed in terms of financial soundness before we take a tax increase to the voter,” she said.
Roche voted for the motion, citing decreased state funding as one reason for its necessity.
“We’re pretty much in financial difficulty at the moment,” he said.
If the issue passes, it will go into effect January 2012.
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