Twinsburg -- Council will address legislation this evening that would send a repeal of the quarter-percent income tax hike to the November ballot.
The income tax increase, which was passed in November 2009, brought the city's income tax rate from 2 percent to 2.25 percent and was intended to fill the revenue gap left by the closing of the Chrysler Stamping Plant. The ballot measure, if approved by Council, would still require approval from the Summit County Board of Elections.
Councilor Bob McDermott said he "absolutely" supports repealing the quarter-percent increase.
"It's clear that we took this [increase] on to bridge the gap with Chrysler [closing] and the revenue from the income tax far exceeds what we had," McDermott said. "If they want it again, they can get it. I am absolutely, positively for repealing it because if you have it, you'll spend it."
If the repeal goes to the fall ballot and is approved by voters, the city's tax rate would revert to 2 percent. If the repeal fails, the income tax rate in the city would remain at 2.25 percent.
Prior to the income tax increase, which took effect in 2010, yearly income tax revenue collection hovered between $16 million and $18 million. Following the increase, the city took in $19.9 million in 2011 and $23.1 million in 2012, though 2012 revenue also contained $2 million in overpayments by local businesses, which will be refunded this year by the city.
-- Compiled by Reporter Conner Howard