TRUMBULL COUNTY Hubbard seeks income tax increase

The finance committee chairman cast the lone dissenting vote.
HUBBARD -- Voters will be asked to approve an increase in the city income tax.
City council agreed unanimously Tuesday night to place a 0.5 percent tax increase on the Nov. 2 general election ballot.
If approved, the tax would rise from 1.0 to 1.5 percent and generate about $500,000 annually for the general fund.
At the same time, council asked that legislation be prepared to increase by 0.5 percent the income tax credit given to residents who work out of town and pay income tax to another community.
Right now, the tax credit for those who work outside the city is capped at 1 percent. If the income tax issue is passed, in conjunction with increasing the tax credit, then those who work outside the city would pay the same 1.5 percent as the people working inside the city.
The income tax increase and the cap increasing to 1.5 percent would generate a total $950,000 per year, officials said.
Dissenting vote
Councilman John Marshall, D-2nd, chairman of council's finance committee, cast the only dissenting vote on the tax credit issue.
Marshall said during a council caucus session before the regular session that lawmakers had agreed earlier that there would be not linkage between the income tax increase and the tax credit.
Mayor Arthur U. Magee asked lawmakers to increase the tax credit, and was joined at the council meeting by Robert Kelley and Geraldine Hallapy, who co-chair the income tax campaign committee, and Dave Bailey, a committee member.
Needs support
Kelley asked that the cap be increased to 1.5 percent because the city needs the support of every wage earner.
Hallapy said she would like to see the campaign committee monitor that the money is being used properly, if the tax increase is approved.
Bailey told lawmakers that the city needs the money to maintain its infrastructure.
In another matter, council approved a resolution supporting the Hubbard Environmental and Land Preservation, or HELP. The citizens group opposes the plan to create a landfill along Drummond Avenue in Hubbard Township.

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