City council tables tax change plan

Published 11:22 am Friday, January 15, 2010

Ironton residents who work outside the city do not have to worry about their taxes increasing — at least not yet.

The Ironton City Council tabled Thursday night an ordinance that would repeal a credit for tax paid to other governments.

Tabling it will give council a chance to work on the budget and look for other solutions to the city’s financial needs, Councilman Frank Murphy, who made the motion, said. If no other solutions are found, the council will reconsider repealing the tax credit, he said, adding that the council does not want to pass the ordinance if it does not have to.

Email newsletter signup

If the ordinance had been passed, all Ironton residents would pay 1 percent of their income to the city, regardless of employment outside city limits.

Currently, those residents who work in other municipalities that have an income tax are only required to pay half of the city’s 1 percent income tax.

The ordinance was introduced at the Dec. 21, 2009, regular meeting. Thursday night’s meeting would have been the second reading of the ordinance, had it not been tabled.

Finance Department Director Kristen Martin said the city stands to generate about $400,000 if the tax credit is repealed.

“The number is compiled by individuals who work outside the city in an area that also has an income tax,” Martin explained. “It doesn’t just mean every person that works outside the city.”

In other business, the Ironton City Council also:

 Passed an ordinance amending the operating budget for the city for the fiscal year 2009.

Heard the second reading of an ordinance that would re-establish a municipal fee at $8 per month, per household.

Approved an ordinance allowing Mayor Rich Blankenship to purchase new dumpsters for the city.

Approved a resolution authorizing the approval of a contract for services agreement with the Ironton-Lawrence County Area Community Action Organization, Inc.