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Income Tax Levy Information
Letter to the Residents - October 2010 Newsletter
Click Here for a Letter to the Residents from City Manager, Jim Lukas
Frequently Asked Questions - September 2010 Newsletter
Click Here for a Letter to the Residents from City Manager, Jim Lukas
Letter to the Residents - August 2010
Click Here for a Letter to the Residents from City Manager, Jim Lukas
There is an error in the Income Tax Levy PowerPoint and Letter to the Residents. The City of Fairborn's income tax rate was listed as 2.00%, but is 1.5%; therefore, since Fairborn's rate would be smaller than the City of Franklin's, residents who live in Franklin, but work in the City of Fairborn would pay Franklin an additional $4.81 per week if the City's levy passes.
News Release
Contact: James Lukas, City Manager, 937-746-9921
City of Franklin to place income tax issue on November 2 ballot
Franklin, Ohio – July 19, 2010: The Franklin City Council tonight voted to place a one-half of one percent income tax increase on the November 2 ballot. The City's current income tax rate has been in effect since 1975 and is the largest source of revenue for the City.
City Manager James Lukas indicates that approximately 70% of City residents who work will not be impacted by the proposed rate change – many of our residents work outside the City limits and will not be impacted at all because most cities in our region already have the same or larger income tax rate than what we are proposing. In addition, our tax credit will not be affected, meaning that residents will continue to receive full credit for income taxes paid to other municipalities.
Lukas adds that the proposed income tax increase is not like a property tax increase, which would impact all property owners within the City limits. Income taxes are paid to the City of Franklin by people who earn wages within the City limits; therefore, traditional retirement income, such as Social Security, pensions, investments and interest, is not taxable by the City – senior citizens and those on fixed incomes will not be impacted by this proposed rate change.
"The proposed tax increase, especially in today's economy, was a difficult, but needed, decision -- our revenue sources are simply not keeping up with the cost of providing services, even after many cuts have already been made. The current economic condition only magnifies this problem," City Manager James Lukas said. "At this point, the City has two options: continue making cuts in services and needed infrastructure maintenance or ask residents for a revenue increase that will restore and maintain our services and infrastructure, such as roadways, at a quality level – we do not want to be in the position that other area cities are in with deteriorating infrastructure. Once you are in that position, it is very difficult, and costly, to change." Lukas added, "This ballot initiative will allow voters to decide what direction we should pursue."
The City Manager said that cash reserves have been used to bridge the gap between revenues and expenses, but the reserves will soon be depleted if corrective action is not taken. It has been 35 years since an income tax increase has occurred. Most cities in our region already have a larger income tax rate than Franklin -- we are now in the position of asking for a similar rate to maintain our service and infrastructure level.
The City will be providing more detailed information to the public about this ballot initiative and the City's financial condition. The Mayor and City Council encourage voters to learn more about this vital issue facing the community by contacting the City Manager's office or through informational posts on the City's website at www.franklinohio.org in the near future.
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