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The proposed tax hike will
increase the temporary 0.75 income tax to 1 percent raising
the overall city income tax from 2.25 percent to 2.50
percent. Much of the additional 0.25 percent will be
earmarked for capital improvements such as road repairs.
For a household with an
annual income of $35,000, the additional city tax would be
$7.29 per month.
“We believe that all
citizens would be willing to pay that,” said Hicks-Hudson of
the increase. The increase is projected to raise an
additional $16.6 million, all of which would become
available in 2017.
The procedure now is to
place the request on a March 15 ballot for voters’ approval.
If the measure passes, the tax hike will go into effect in
July 2016.
Hicks-Hudson had been
relatively quiet during the recent mayoral campaign about
the possibility of raising taxes for infrastructure
improvements unlike some of her more vocal opponents, such
as former Mayor Mike Bell and Mike Ferner, who embraced the
idea. She simply had not made up her mind at that time, she
explained on Monday.
She wanted to be able to
assure Toledo’s citizens that city government would be “good
stewards” of their money. “I can give a good argument that
we will be,” she said.
“Having passable roads is
an economic driver,” she said addressing the issue of the
impact of a tax hike n the local economy. “I do not believe
this will have a negative impact on the economy. I believe
that this will help attract businesses to Toledo.” She cited
the example of Columbus and the positive impact that raising
taxes and improving infrastructure have had on that city’s
economic growth.
As for the impact on
individual tax-payers, the mayor said that the increase will
have “an almost negligible impact when we look across the
board.”
The city will not be
spending a lot of money campaigning for the increase, said
Hicks-Hudson. She anticipates primarily a low-key, retail,
door-to-door effort explaining the need for tax hike.
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