Twinsburg -- Council addressed a potential repeal of the .25 percent income tax increase Feb. 26, sending an ordinance to put the repeal on the November 2013 ballot to its second reading.
If adopted, the ordinance would send the repeal to the general election's ballot, where residents would decide to repeal or continue the .25 tax increase that was passed in 2009 to make up for lost revenue from the defunct Chrysler Stamping Plant.
Councilman Gary Sorace said legislation for ballot issues such as the repeal cannot be passed as an emergency so it needs to be given three readings by City Council. Sorace said Council is dedicated to following through on its original commitment to introduce a repeal after four years and put the decision to the residents.
"That's what we said we would do and we're definitely going to do it," Sorace said. "I don't think we're going to campaign one way or another. I think we're to a point where we think we can make it through the next couple years and if we then need to reinstate it, we'll go back to the people but for now, we don't need it."
If the repeal goes to the fall ballot and is approved by voters, the citys 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.