GENEVA-ON-THE-LAKE — Village council will consider putting a one-half percent income-tax increase on the ballot at a meeting Feb. 1, Geneva-on-the-Lake administrator Jim Hockaday confirmed.
“This is something that has been on the table for a long time,” Hockaday said. “In terms of fiscal (surety) and looking after the overall health and well-being of the general fund, it is necessary.”
Hockaday said the proposed tax increase “is not a financial windfall,” and he estimates it would bring an additional $50,000 annually into village coffers. If agreed, council will place the measure on the May ballot.
Mayor Dave Nelson said council members have discussed the issue “at length.”
“This wasn’t something we took lightly. Council members and the Finance and Ordinance Committee have discussed this at length,” he said. “(The increase) is just enough for us to squeak by.”
Hockaday said the village income-tax rate has not changed since 1988.
“The village suffers from inflation, too,” he said. “To remain viable, solvent and efficient, the village needs more funds.”
Hockaday said the income-tax increase would not affect every village resident, as a tax credit may be available for people who live in the village but work elsewhere.
“If council maintains the current tax credit, which is given by ordinance, the only people who will really be affected by the increase are people who both live and work in the village,” he said.
Hockaday said council members will discuss the issue and vote at their regular meeting 7:30 p.m. Feb. 1 at the village Safety Service Center on South Warner Drive.
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