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Macedonia City Council sets special meetings on potential income tax issues for November

From Staff Reports Published: August 4, 2016 4:05 PM
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Macedonia — Council members Kevin Bilkie, Nick Molnar and Jan Tulley have scheduled three special Council meetings designed to give Council enough time to discuss and give three-reading approval of a proposed 0.25 percent tax increase and a proposed 0.25 percent income tax renewal before the Aug. 10 filing deadline for the Nov. 8 general election.
The meetings are scheduled for Aug. 5 at 6:30 p.m. and Aug. 8 and 9 at 7 p.m. There will be a work session starting at 6:30 p.m. prior to the Aug. 8 meeting.
Tulley told the News Leader that a decision has to be made one way or another on what the city does next for new revenue after the Aug. 2 failure of Issue 1.
Issue 1 would have raised the city’s income tax rate from 2 to 2.5 percent for five years, after which it was to decrease to 2.25 percent. The measure would have brought Macedonia $3 million annually the first five years and was earmarked for stormwater and road projects.
Issue 1 failed by a three-to-one margin by voters, 1,458 to 498, according to unofficial results.
The first measure up for discussion by Council is a 0.25 percent continuous income tax increase for road improvements and stormwater projects. If put on the ballot and approved, it would take effect in January 2017.
The city’s income tax rate is currently 2 percent, but is scheduled to drop to 1.75 percent in June 2017 when a recreation tax expires. If voters approve the increase, the city’s tax rate would be 2.25 percent, effective Jan. 1, 2017.
Two other measures up for discussion ask voters to renew a 0.25 percent income tax earmarked for recreation that is set to expire in June 2017. The renewal would be for 20 years, according to the legislation.
One of the renewal measures states the renewal would be effective if the 0.25 percent increase is approved by voters. If both measures are put on the ballot and approved, the city income tax rate would be 2.25 percent after June 2017.
The other renewal measure states the renewal would be effective if the 0.25 percent increase is not approved by voters. If the increase fails and the renewal is approved, the city income tax rate would be 2 percent after June 2017.
Eric Marotta: 330-541-9433

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