Over taxing one part of the community “seems fair” – an are you kidding me moment…
First let me reveal my potential bias in this scenario, we have not yet been given any information as to what the impact of the increased Toledo City income tax being proposed at those who do not work in Toledo will have on those who work in a JEDZ that already collects the 2.25%. Despite asking several council members no one has yet shared that answer as to would those in a JEDZ be required to pay an additional 50% on top of the 2.25% already being taken. It’s been frustrating for many of those like my husband and his fellow co-workers to not have that answer, nor are they alone since there are a good many people who are impacted by a JEDZ and live in Toledo. The Blade article of today again makes no mention of the JEDZ.
That potential conflict of interest revealed, even if it is determined that those in the JEDZ who pay 2.25 are immune, I’d still take issue with this, and question this:
Mr. Reinbolt said the Finkbeiner administration is not recommending increasing Toledo’s 2.25 percent tax rate.
“That is certainly something you have to take to the voters and it takes time to do,” he said. “The tax credit plan impacts a smaller amount of people and seems fair.”
But raising the tax by 0.25 percent would generate an additional $18 million to $20 million a year, Mr. Reinbolt said.
Let’s be real here, the chances of the voters of Toledo approving an additional .25 percent tax increase is slim in this economic climate, it’s something that I do expect to happen, but despite the high approval of the last .75% tax rate, I would not predict an increase could pass. Not when many believe (and rightfully so) that there are other ways the City could become more fiscally responsible.
How could the City of Toledo save close to five million dollars? I can come up with two suggestions that could potentially save millions, the City could stop purchasing food items and other non-essential items using the under $10,000 spending ability. Considering it’s been reported that almost 13 million dollars was spent in purchases that were under $10,000, it’s very easy to believe that several million dollars of that could have been unnecessary spending.
The City paying any part of an employee PERS contribution could be ended, that would save millions of dollars, especially if it were instituted in every upcoming union contract so that it affected all City employees. Take just those two actions? We’d probably save much more than five million…
There is of course an economic impact factor on cutting some of the $10,000 spending, since necessary or unnecessary it does give a boost to some local businesses, which is why the ideal scenario could be the PERS. While in many cases it came as a result of a “me too” clause and was given in lieu of raises, those were different economic times than we face now and would have less of an impact on Toledo residents than this suggested selective tax increase, a .25% tax increase or an increase in the trash/garbage fee. It’d also be better than receivership, where all of those agreements would be potentially no longer valid.
It would however take political courage to take that kind of a stand on PERS across the board.
well put and thanks for bringing some attention to this issue….reading the article this morning was very disheartening and I continue to be frustrated to read that the way to continue to solve the budget problems is to find ways to increase taxes on decreasing tax base-what a terrible tax policy decision. I tend to agree with the couple’s view in the article-this decision if implemented will probably be the straw that will break the camel’s back for our family as we look to a suburban community with good public schools.
February 21st, 2009 at 7:57 pmLisa – in the JEDZ that Toledo has, does 100% of the income tax go to Toledo, or is there a split with the other jurisdiction(s)? I know there can be an allocation of the tax, but I don’t know how the JEDZ Toledo has are actually structured. You do bring up a very valid point, and if each JEDZ is a little different, how exactly do they craft the legislation to address this issue?
I did a little research before I hit submit and found this about the Perrysburg Twp JEDD:
“The deal guarantees Toledo will continue to receive the equivalent of all the income tax revenue it got from FedEx’s employees in 2006 or 2007, whichever is greater, and 50 percent of all future income tax revenues generated from it and other businesses that move to the site.”
So, how exactly do the employees who work in this JEDD get or not get a credit under the proposed 50% credit proposal? Some have 100% of their income tax go to Toledo, others only 50%.
February 22nd, 2009 at 7:50 amI’m most familiar with the Maumee/Monclova/Toledo JEDZ though I’ve read some of the other agreements. Here is what was stated in 2006:
The Board of Directors of MMT (Monclova/Maumee/Toledo) JEDZ agreed to have the City of Maumee Income Tax Division administer the income tax for Monclova Township. Therefore there will be 1.5% income tax withheld on employee wages effective July 1, 2006. All wages paid after April 1st are taxable regardless of when they were earned. For those employee’s who live in the Maumee area you will not see a difference. For those employee’s who live in Toledo you will see that the tax is reciprocating so you should not see a difference in tax between Toledo and Maumee.
Since the money is being collected/administered by Maumee, even though Toledo residents are already paying the 2.25% – it’s not clear if they will be hit again. According to what Mark Sobczak stated, since a portion of that tax dollar collected (that is strictly because of the JEDZ agreement since there was no income tax in Monclova) Toledo residents working in Monclova could have to pay an additional amount to Toledo. As it stands now (OHMMT 1.5%) and (OHTOL .75%) is how it’s broken up for Toledo residents working in Monclova.
February 22nd, 2009 at 9:44 amThis definitely will chase more residents out of Toledo (again!) and it will be the working class! Pretty soon all Toledo will have left will be those who do not pay city income tax for one reason or another. (what was it that brian wilson called the senior citizens? oh yeah, parasites. from the looks of him isn’t he to be considered a parasite?) Particularly since they continue to lose businesses to suburban communities that are more business friendly. Thank God I don’t live in Toledo!
Keep informing the public Lisa! You are doing a great job of giving the side of the story we won’t see in the blade!
February 22nd, 2009 at 12:38 pmI’d be interested in the adjusted residential census report for Toledo proper after this fiasco passes.
Carty claims he found appox 30,000 people the census missed?
From the mantra of the radio disc jockey: rent, don’t buy.
February 22nd, 2009 at 3:28 pmIt just seems like they are punishing people for things that are out of their control. Both my hubby and I work in the ‘burbs, because there are NO JOBS within the Toledo city limits. Stop trying to find ways to pick my pocket.
I swear, Carty and council does something nearly every week to make me regret deciding to buy a house in Toledo.
February 23rd, 2009 at 11:49 am