Olmsted Falls asking November voters to increase municipal income tax rate

Community NewsOlmsted Falls City Hall. (John Benson/cleveland.com)John Benson/cleveland.comBy John Benson, special to cleveland.comOLMSTED FALLS, Ohio -- Residents on the Nov. 3 ballot will be voting on an increase of the city’s municipal income tax rate from 1.5% to 2.0%.City Council -- at the behest of Mayor Chad Gluss -- last night approved the operating expense increase that, if approved, will go into effect on Jan. 1. “I want the residents to understand two things are happening right now in Olmsted Falls,” Gluss said. “People are very upset with how high property taxes are and people were very upset that we did not compete for the JEDD (Joint Economic Development District) with Olmsted Township. “For both of those reasons, increasing our income tax to 2% would definitely give us a seat at the table in any future JEDD developments. “Also, I’m not sure what the state’s going to do in the future about property taxes, but if there’s ever a decision made, we’re already ahead of the horse on that one.” In order for the issue to be on the fall ballot, the measure required a Cuyahoga County Board of Elections Aug. 5 deadline.“I worked for the city for 22 years and funding has always been an issue,” he said. “There’s a big push right now at the state level to eliminate property taxes. While I don’t believe that there needs to be the elimination of property taxes, I do believe there needs to be some kind of reform.” That reform in Olmsted Falls -- predicated on a voter-approved increase of the city’s municipal income tax rate -- would find the city sunsetting four property tax levies in the future. That includes three for the fire department and one for the police department. “Meaning, if the income tax proposal does pass, then as those levies run out, we would not go back to the voters to renew them,” he said. “We would just shift the money from the income tax to pay for those services as opposed to property taxes. “Now, some people’s taxes may go up a little bit, some may go down, but really what we’re doing is shifting it off of your property tax and into your income tax.”Gluss noted that residents earning $50,000 annually with a $250,000 home will see a $435 yearly increase if the municipal income tax rate ballot issue is passed. The mayor said the deciding factor against Olmsted Falls joining the JEDD had to do with its current 1.5% municipal income tax rate.“Talking with the Olmsted Township trustees, I completely understand their position,” he said. “Fiscally, it made sense for them to go with somebody who had a higher income tax rate. “I would like the voters to potentially consider raising our income tax so we can compete with future JEDDs.”The city would also eliminate a current 50% tax credit for new business development. The mayor noted the city will be releasing a municipal income tax rate increase calculator so residents can see where they would fall financially.“We’re going to start hitting the pavement to explain this to people,” he said. “There will also be open houses at the firehouse and City Hall, probably starting in early September when the kids get back in school.” Read more news from the Sun Post Herald here.