GENEVA-ON-THE-LAKE —
Just 25 percent of residents will be impacted by the proposed .5-percent increase in income tax, Village Administrator Jim Hockaday said, unless it doesn’t pass on Tuesday.
“We are at a place where if this tax increase doesn’t pass, we will likely rescind the village tax credit, which excludes taxing people who live in the village but work in other municipalities that collect income tax. That means that instead of 25 percent of residents paying the tax, everyone will pay it. Right now, if you are working in another community that collects an income tax from your wages, you don’t have to pay any of this increase.”
But if not you, then who?
Hockaday said Geneva-on-the-Lake businesses and their employees are the target of the proposed tax increase. Because most residents work in other communities, “That excludes 75 percent of village residents from this tax increase,” he said.
Hockaday said he understands the difficulty in passing a levy in a struggling economy but notes that many village residents, including senior citizens, would not be affected by the proposed tax increase.
“The increase only affects earned income,” he said. “It does not apply to Social Security or retirement, as that is not taxable when it comes to an income tax. Senior citizens really need to understand that this tax increase will not affect them,” he said.
Hockaday said the increased tax revenue has become so imperative to village operations that Council is considering other forms of taxation, including a local, seasonal sales tax for resort towns.
“And we just don’t want to have to do that,” he said. “But all income tax receipts go into the village general fund and nearly 50 percent will go to the police department for staffing and operations.”
The tax became necessary after the village lost $51,000 because of cuts in state funding, Hockaday said.
The income tax has not been increased since its inception in 1988. The village has the lowest income tax in the county and the proposed tax increase would bring an additional $50,000 annually into village coffers, Hockaday said.
Hockaday said village fiscal officer Kim McKinley is happy to answer any questions about the proposed tax increase. Call 466-8197 or email fiscalofficer@windstream.net.
Click here to subscribe to The Star Beacon print edition.
Click here to subscribe to The Star Beacon replica edition.
