City looking to eliminate city tax credit

DAVE MOSIER/independent editor

With the second defeat of the city income tax increase, Van Wert City Council is considering levying its own tax, so to speak, on residents who live here and work in other communities.

Council has apparently decided to discuss elimination of all tax credits for city residents who work outside Van Wert.

“Because times have changed,” said Third Ward Councilman Ken Markward, noting that the state has reduced revenues to municipalities, creating a need for more city revenues. “I, right now, am having a difficulty continuing to have people who work in Van Wert subsidize the tax bills of people who work outside. In other words, I’m proposing we look at taking that [credit] to zero.”

Markward noted that, according to numbers provided to Council by then-Income Tax Administrator Rudy Grant, zeroing out the tax credit would add approximately $200,000 in additional revenues annually.

The action, if taken, would be a reversal of recent legislation to increase the credit, but a continuation of a gradual phase-out of the credit taken by previous City Councils.

The tax credit for those who live in the city, but work elsewhere, was originally 100 percent of the then-1 percent tax, but previous City Councils have gradually lowered that percentage to 75 percent, then 50 percent, and now the current 25 percent reduction.

Markward did note that, if the city income tax increase had been approved, Council would not be looking at taking action to eliminate the credit. In fact, City Council members approved an increase in the credit to 50 percent under legislation passed earlier this year, but made that increase contingent on passage of the tax increase.

With the defeat of the tax increase, the tax credit increase was also removed.

Also Monday, City Council also is considering some amendments in the downtown parking ordinance that could indicate a return to enforcing two-hour parking in the downtown area. Council approved amendments to the ordinance to make fines $40, eliminate one unneeded handicap parking space, as well as a taxicab parking space also no longer needed.

A measure was introduced that includes those amendments.

Council also introduced and read for the first time a resolution that would increase city water rates 5 percent, and sewer rates 7 percent. That measure will be read two more times. The increase is needed, according to Safety-Service Director Jay Fleming, to pay for future utility improvement projects.

Council did approve a stipend of $21,000 to the Van Wert Regional Airport Authority, which would come from the Hotel-Motel Tax Fund.

Council also reappointed Joan Stripe and Gary Taylor to the Brumback Library Board, and Kenny Crawford to the Airport Authority. Paul Hoverman and Laura Metzger were also reappointed to the City Income Tax Board of Appeals.

Fleming also noted that Friday is the last day of work for Parks Director Sue Heppeard, who is retiring. That position will be filled internally, with the net loss of one job in the parks department, according to Mayor Mazur.

Stacy Adam, executive director of the Van Wert Area Economic Development Corporation, had some good economic development news. Noting that MEK, the Spanish company that is locating a manufacturing operation in the Miller Precision Manufacturing building, will receive approximately $100,000 in tax credits to pay for employee training costs.

She also noted that the Van Wert County Land Reutilization Corporation (land bank) was also given an additional $500,000 for its Neighborhood Initiative Program because it was the only such entity in the state to meet mandated goals for demolishing derelict houses and commercial buildings under that program.

Adam also noted that the land bank is looking at the possibility of adding two communities, Delphos and Wren, to the target area for demolitions, due to requests from those communities.

The next meeting of Van Wert City Council will be at 6:30 p.m. Wednesday, December 27, in Council Chambers on the second floor of the Municipal Building, 515 E. Main St.