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Buckland considers income tax

January 12, 2013

BUCKLAND — A new tax will soon be coming to Buckland residents. And village leaders would like to have another tax generating income.

Buckland Village Council members approved Thursday the first reading of an ordinance establishing a 1 percent income tax to residents.

Councilors began investigating the possibility of implementing a 1 percent income tax on members of the village to raise money for operating funds. Councilors first discussed the possibility of putting the tax in to play after a 2.6-mill property tax renewal was narrowly defeated by voters in November.

Councilors agreed the money is needed because of large cutbacks from the state in local operating funds, which were cut from $44,000 to $32,000 for 2013. The village will still collect the defeated tax next year, as it was collected in arrearage. The levy generated approximately $5,000.

The income tax levy, which is expected to generate approximately $20,000 for the village, would likely not be in place until July. The tax would provide zero credit, meaning residents from other villages working in Buckland would not receive a credit. Effectively, if they worked in Wapakoneta, which has a 1 percent income tax, they could pay a total of 2 percent to municipal income tax.

However, Buckland residents would receive credit if they worked in other municipalities offering credit. Wapakoneta has a 100 percent credit, meaning Buckland residents would receive full credit from paying Wapakoneta municipal income tax.

Councilors listened to a presentation from  a representative from Regional Income Tax Agency (RITA) in December, a company that collects income tax for communities. Local communities that have participated in RITA include Harrod, in Allen County, and Kettlersville, in Shelby County.

After joining in 2012, Kettlersville, discontinued the tax and will no longer be participating.

Buckland Mayor Dan Lambert said the village would likely hire RITA to collect its income taxes.

Councilors scheduled special meetings for Jan. 24 and Jan. 28 to have second and third readings  to meet deadlines to have the property tax levy on the ballot before deadlines for the May election.

The income tax could be coupled with another new payment for residents, as councilors approved to place a 4-mill property tax levy for fire and rescue services on the ballot.

The fire and rescue levy would generate about $7,000 to cover expenses for fire coverage with the Buckland Fire Department and EMS, or rescue squad services, from Cridersville Fire Department.

A 4-mill levy would generate approximate $140 per year on a $100,000 home.
 

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