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Reciprocity of Niles tax reduced by officials



Published: Mon, August 26, 2013 @ 12:05 a.m.

By Jordan Cohen

news@vindy.com

NILES

More than 2,300 residents who are employed in another municipality may be in for a shock when they file their 2013 Niles income-tax returns next spring. They’re going to owe the city more tax money—approximately one-half percent of their taxable income.

Residents who had been credited with paying the full amount of Niles’ 1.5 percent income tax elsewhere will find that is no longer the case even if they pay a higher income tax where they work. An ordinance quietly passed by city council in a special meeting July 5 reduces reciprocity — the credit for tax payments to another municipality — to 1 percent. That leaves residents responsible for the remaining half percent of the Niles tax.

As an example, a Niles resident employed in Warren and making $40,000 in taxable income would still owe $200 despite paying Warren’s higher income tax of 2 percent.

“Other cities are reducing reciprocity, and it’s just a half-percent,” said Mayor Ralph Infante. “It’s not a tax hike, and I haven’t had any complaints.”

However Councilman Steve Papalas, D-at large, said he has gotten what he describes as a mixed reaction. “I’ve talked to a half-dozen people, and four called it a really bad idea, and two just shrugged their shoulders,” Papalas said.

“I wasn’t crazy about it, but this was the easiest way to do it because we don’t want another tax hike in the city,” said fellow Councilman Reggie Giancola, D-at large.

City Treasurer Bob Swauger said the reduction in reciprocity could earn the city as much as $315,000. “Our income-tax collections are up by $115,000 from last year, but it’s still pretty flat,” the treasurer said.

Figures provided by Swauger show that Niles’ income-tax collections declined by nearly $800,000 during the recession and recovery. Swauger estimates the 2013 collection will generate revenue of $5.8 million.

The mayor said he feels there is no other choice. “We’re at bare minimum and we’re spending $20,000 a month on hospitalization insurance,” Infante said. “I don’t want to see us get down to nothing.”

The city, however, pays all the hospitalization for its 175 employees. A spokeswoman in the payroll office said no pay is deducted from the employees for their medical premiums.

Papalas said he hopes the mayor will agree with his suggestion on use of the revenue generated by the reduced reciprocity.

“I’m hoping we use it for the fire department because they really need a new truck,” the councilman said.


Comments

1PCisnotcorrect(33 comments)posted 11 months, 1 week ago

Double dipping Mayor, idiots in the water and light department that sit around wasting taxpayers money and they want more, well maybe we the residents of Niles should hold a meeting and reduce the wages paid to city workers, Niles needs this as it is becoming a welfare city, on welfare come live here!!!!!!!

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2Attis(865 comments)posted 11 months, 1 week ago

These politicos timed this legislative action so that a citizens referendum on this attempted legal theft would not be able to make ballot status this November. Bunch of crooks that all deserve to be thrown out of office.

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3Travolta(11 comments)posted 11 months, 1 week ago

"A spokeswoman in the payroll office said no pay is deducted from the employees for their medical premiums."

And there is it.

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4Walley(1 comment)posted 11 months, 1 week ago

There is to many employees in the City of Niles now. During early morning hours you will find Niles City Employees either at Niles McDonalds on Main St. or Bob Evans ON 422. Most of the city employees run personal errands on city time. If the electric dept. hasn't got any calls, they are in the building sleeping on the late afternoon shift. They also have an employee that makes sure most of the old cruiser are bought by a local car lot, then they sell them to a local taxie cab company. There is a lot more of this going on in our city, and we are paying for the city workers health insurance. Where does it end !!!!!!

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5123goz(513 comments)posted 11 months, 1 week ago

"......and I haven’t had any complaints.”
Because nobody knew about till now?

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6stan_smagala(56 comments)posted 11 months, 1 week ago

"It’s not a tax hike..."

Yes, it is.

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7Travolta(11 comments)posted 11 months, 1 week ago

“I wasn’t crazy about it, but this was the easiest way to do it because we don’t want another tax hike in the city,”

a) It's a tax hike.
b) Thanks for taking the easy way out, Councilman Giancola.

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8NachoCheese(161 comments)posted 11 months, 1 week ago

A TAX HIKE is a TAX HIKE - no matter how you try to hide it. Here is another glaring example of abusive municipal taxation and why the state needs to enforce a uniform system statewide that is most fair to all.

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9djames3480(1 comment)posted 11 months, 1 week ago

is the city of niles really nuts....this is the most underhanded stunt by a city that I used to respect. I moved to niles more than 15 years ago because everything I saw was far better than warren. this secret ordinance they passed is the most ridiculous thing I have seen and they all should be ashamed of themselves. the bottom line is why should people who don't work in niles be discriminated against so the employees of niles can enjoy free health care insurance when the rest of the hard working public has to pay their fair share.. I am really disappointed in steve papalas coments . believe me this issue will not rest unheard by me... I will be glad to be further contacted or help organize a protest to stop this unjustice before it catches a lot of unsuspecting people off guard next tax season.

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10UMadBro01(1 comment)posted 11 months, 1 week ago

I've just read all the comments left on here and I'm honestly laughing out loud at the absolute stupidity of some of them. PCisnotcorrect, I'm guessing you have nothing better to do than sit around and complain about things until you need something. Hopefully next time a storm blows through and your power goes out, yours will not be turned back on by the "idiots" who work in the light department, and next time there's a water break in your area, it's out for hours and hours on end because the "idiots" in the water dept. are sitting around wasting your money. The reason Niles is how you call a "welfare city" is because of lazy ass people who don't care about finding a job. There's plenty of places hiring, all people have to do is look. The way they look at it though is they're getting free money from the government to sit around, pop out kids, buy the bare minimums for them and spend the rest on drugs. If I was a total lowlife, which is how you make yourself sound out to be, that sounds like a hell of a way to live; do nothing and receive money. Frankly, you sound like a real d-bag.

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