The city of Dayton’s income tax revenue reached a record high in 2017, fueled by the tax increase approved by voters the prior year.
Income tax collections shot up to $122.4 million last year, which is the highest amount the city has ever received, not adjusted for inflation, city officials said.
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Adjusted for inflation, the city’s income tax revenue was likely higher in the 1970s, said Diane Shannon, deputy director of Dayton’s office of management and budget.
Voters in 2016 approved a tax hike that increased the city’s earnings tax to 2.5 percent from 2.25 percent, and without that, Dayton’s income tax revenue would not have climbed back up to its pre-recession peak.
The high-water mark for collections was $113.8 million in 2006. Last year, the city collected $111.8 million, not counting the revenue from the additional 0.25 percent levy.
Collections fell off a cliff between 2007 and 2008 during the Great Recession.
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Shannon said the city still faces long-term structural budget challenges and “additional resources are needed in the area of infrastructure maintenance and replacement.”
The city’s overall general fund revenue increased by $12.2 million last year to $170.6 million, city data show.