Temporary Income Tax Hike Meeting
Lebanon City Council
7 p.m., Tuesday
50 S. Broadway, Lebanon
For more information, call 513-933-7200.
Local voters are likely to see a new kind of tax proposal on November ballots, a temporary income tax hike earmarked for street repairs.
Lebanon City Council is moving ahead with plans to seek a five-year, 0.25 percent increase in the local income tax in the Nov. 3 election.
Last week, Lebanon City Councilman Mark Messer suggested the short-term, income tax hike as an alternative to two options presented for final review during a work session: a five-year, 1.5 mill street levy on property owners in the city and a 0.5 percent reduction in the income tax credit for residents working outside city limits.
Messer and a majority of the council indicated support for the temporary income tax hike expected to raise about $1.6 million a year - the amount needed to catch up on repairs to the city’s crumbling streets.
“I would rather put this up three times and have it fail twice,” Messer said. “I would rather take the time to do it right.”
But questions over the legality of a short-term, special purpose income tax increase prompted Law Director Mark Yurick’s legal review.
“I see no law prohibiting a municipal corporation from placing a limited purpose income tax before voters,” Yurick said in an email.
The local council has come close several times to putting a tax issue before voters before voting majorities vaporized when the proposed tax issues came up for a final vote.
With council members committed to vacations, the group seems headed for a final vote at a special meeting in late July. On Tuesday, the council is scheduled to consider and possibly take the first step toward putting it on the November ballot.
The issue faces a tight timetable. It needs to be to the board of elections on Aug. 5.
Even if it gets that far, the issue still needs to be approved by voters.
“The tax word any way is toxic right now,” Councilman Jim Norris said before indicating he would support the temporary increase. “Combine that with the words income tax, I don’t think so.”
Lebanon’s income tax has been 1 percent since 1973, despite several ballot initiatives.
“It’s going to be a really tough sell. We may not be successful the first time,” Mayor Amy Brewer said.
“There’s a lot of ignorance out there.”
Council could cut the income tax credit for residents working elsewhere without a popular vote, but might be subject to wrath from local voters. The burden of street levies falls entirely on local property owners.
Voters might be swayed by the fact most would not be subject to the tax hike because most work and pay income tax elsewhere, Councilman Steve Kaiser said.
The other options were only partial solutions. Meanwhile local roads would continue to crumble faster than they could be patched, officials said.
“It only makes sense to pay less now than more later,” Councilman Jim Dearie said.
City Manager Pat Clements warned that a future council would be faced with convincing voters again in five years or falling behind again.
“Let’s take it a step at a time,” he said.
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