NORTH TOWNSHIP ‒ Officials continue to examine ways to improve the town’s finances.

Council members appear inclined to commit to repealing the $1.5 mill fire tax and the $3.3 mill emergency medical services tax, with collections set to end in 2027, and are not seeking not to renew or replace the 1 million road tax which should end soon. year.

That’s provided voters approve a half-percent increase in the city’s income tax rate in May, to 2 percent.

The credit granted to Northern Township residents for taxes they pay to work elsewhere would remain capped at 1.5%. That means if voters approve the increase, city residents would pay 0.5 percent of their taxable income earned outside the city and an additional 0.5 percent earned within the city.

Related: North Township Council plans to again ask voters to approve tax increases

Deputy Director of Administration Benjamin Young estimates the proposal would raise nearly $1 million more per year to fund a new fire station.

Repealing the three levies or letting them expire without replacing them with levies based on updated property assessments would cost the city about $2.67 million a year. But a 0.5 percent income tax increase without expanding the tax credit for those working outside of North Canton would raise about $3.66 million.

The city could then issue bonds to borrow about $16 million to pay for the fire station and use the $1 million in additional revenue per year to repay the bonds with interest over a 25-year period.

The downside is that the street fund would receive about $34,433 less per year to fund road paving. With skyrocketing asphalt prices, the city would only be able to resurface many of its streets every 53 years, Young said.

Council members balked at calling for an income tax increase from 0.75 percent to 2.25 percent to provide more funds for street paving.

Tax choices of the Canton du Nord

The City Council last week discussed alternatives to fundraising for new fire stations and street paving. It’s after the March voters number 7 rejecteda 0.5% income tax increase with no increase in the credit protecting those who work outside the city. Voters November 5 rejected a bond levy to fund the fire station and an increase in the street levy.

The proposed 0.5% income tax increase discussed Monday is identical to the No. 7 income tax rate increase rejected by voters in March. But this time, it would come with a promise to end three property tax levies if approved. None of the seven council members expressed opposition to the idea Monday.

Young’s calculations show that the majority of city property owners, including those who work outside North Canton, would pay less with the proposed income tax increase than if the city persuaded voters to approve more costly replacement levies based on updated property valuations in the event of a fire. EMS and streets and a new bond levy of 1.5 million to pay for the fire station.

Retirees who live and own property in North Township and whose income is largely exempt from the city’s income tax would be the biggest winners. They would save money on repealing property taxes and pay little or no income taxes to the city.

But people who work in North Township but don’t own property in North Township, including renters and non-residents, would pay an additional 0.5% of their income. A worker making $50,000 a year in the city would pay $250 more a year in North Canton.

So almost everyone who would pay the most under the proposal would not be allowed to vote on the income tax increase because they don’t live in North Township.

“This is how income taxes work,” said Council Member Stephanie Werren, At-Large.

Werren said that when she worked in Canton, voters there approved a 0.5% increase in Canton’s income tax, from 2% in 2018 to 2.5%. Werren had to pay Canton an additional 0.5% of his income in that city. But because she lived in North Canton, she couldn’t vote on Canton’s tax increase.

Council member Jamie McCleaster, Ward 1, said state lawmakers have set up a system where people are often taxed based on where they work rather than where they live. Cities can only adopt taxes in accordance with state law. He said North Canton’s income tax rate, if increased to 2 percent, would still be lower than Canton and Akron’s income tax rates, which are 2.5 percent. .

Young said, “Instead of spreading it (the cost of the income tax increase) over 7,000 people (township property owners), we’re spreading it over 40,000 people (township workers of the North).”

No double taxation

Councilmember David Metheney, Ward 2, said he wanted to make sure that if voters approved the 0.5% income tax increase, the council would plan for the end of the fire, of EMS and street levies to ensure that the city is not collecting new tax revenues and at the same time old levy revenues. Any income tax increase approved by voters in 2025 would not take effect until January 1, 2026.

Young said a North Canton household that earns an average of $69,000 a year and owns a $220,000 home in the city would pay $345 more in income taxes. But if the city instead persuaded voters to approve more costly replacement levies for current fire, EMS and street taxes, as well as a new $1.5 million bond levy for fire stations, the cost of these four property tax levies would be $562.

Young’s chart does not provide figures for what North Township residents currently pay for fire, emergency medical services and street taxes.

The Council has until February 5 to vote for an income tax increase in the May 6 primary vote.

Council President Matthew Stroia, of At Large, encouraged city residents to come to the council meeting this Monday at 7 p.m. at the city’s Civic Center to provide feedback on the proposal.

Contact Robert at [email protected].

This article was originally published on The Repository: North Township Council considers income tax hike, property tax cut