BLANCHESTER — The village council may enact an income tax ordinance next year.
At Thursday’s Blanchester Village Council meeting, members discussed the possibility of implementing the tax ordinance at the beginning of 2022.
According to the ordinance, the 0.5-percent tax would provide funds for the Blanchester Village Police Department by levying an annual income tax — on “income, qualifying wages, commissions, and other compensation, and on net profits, as hereinafter provided.”
If enacted, it will be levied at a “uniform rate on all persons residing in or earning or receiving income” in Blanchester.
Councilmember Don Gephart asked if this would be placed on the ballot, Mayor John Carman stated he didn’t.
“The village council has the authority to enact up to one percent (levy),” said Carman.
Village Solicitor Katie Wilkin told Gephart anything less than one percent does not require elected approval from a ballot. Carman advised it’s very similar to ones done in the past.
“There will be about eleven or twelve exemptions,” said Carman. “People who are on Social Security or fixed income, they wouldn’t be affected.”
He added that they also discussed the reciprocity. “If someone is paying it somewhere else, we wouldn’t have them pay it here. Why penalize our employees or residents who are working somewhere else who are already paying that somewhere else,” said Carman.
He advised this could bring in $250,000 and he was in favor of enacting it instead of earnings tax. Councilmember Harry Brumbaugh believes in moving forward with it. Councilmember Chad Hollon said they should make sure all the numbers should be solid.
No further action was taken. The ordinance will be discussed at future meetings.