GENEVA-ON-THE-LAKE — Village Council took the first steps toward a one-half percent income tax increase Monday night, quietly observing the first reading of an ordinance to place the measure on the May 4 ballot.
The village’s 1 percent income tax rate has endured since 1988, and the proposed one-half percent increase would bring nearly $50,000 a year to village coffers, Geneva-on-the-Lake administrator Jim Hockaday said.
The tax collection would take effect June 1, the ordinance shows.
The village income tax is used “for the purpose of providing funds for the purpose of general municipal services and facilities and capital improvements of the village,” the ordinance states.
Council’s application for the ballot measure is due to the Board of Elections by Feb. 18. The Feb. 15 council meeting has been changed to Feb. 8 for the observance of Presidents Day.
Council also held the first reading of the income tax credit. Under this ordinance, people who live in the village but work in other municipalities are eligible for a 50 percent tax credit. This tax credit is already available to village residents, Hockaday said.
“So if the income tax increase passes everyone will pay more taxes, but the income tax credit is still an option,” he said. “Really the only people who will be affected by the increase are people who both live and work in the village,” he said.
In other news:
n The annual GOTL Police Department Reverse Raffle will be held March 27.
n A finance and ordinance committee meeting will be held Monday at 7 p.m. at the Village Safety Service Center.
n Village residents can get tax preparation help April 6 from 4 p.m. to 8 p.m . at the safety service center.
n Village spring cleanup will be held April 24.
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