by Amanda Harnocz
Reporter
Tallmadge -- The Tallmadge/Brimfield Joint Economic Development District Board decided to increase the income tax rate in the JEDD by .25 percent in 2012, instead of by .5 percent in 2014.
Currently, employees in any of the 128 businesses in the JEDD pay a .75 percent income tax to the JEDD, which will now increase to 1 percent in 2012.
"We thought it was a lot to ask -- a bigger raise on income tax," Mayor Christopher Grimm said. "It's easier on the people paying the tax, you won't feel as much losing a quarter of one percent as you would losing a half of 1 percent."
The JEDD is located mainly south of Interstate 76 and on both sides of Route 43, it also includes a portion of Crystal Parkway.
"The JEDD enhances the ability to develop and expand infrastructure improvements including providing central water and sewer to the district creating highly desirable sites to attract business and industry," according to Tallmadge's income tax Web site.
The income tax collections by Tallmadge in the JEDD are split 50-50 with Brimfield, according to Finance Director Jill Stritch.
About $248,000 was collected as Tallmadge's portion of this year's current .75 percent income tax, as of the end of November, she said. Stritch said she expects about $250,000 in JEDD income tax collections for Tallmadge by the end of 2010 as well.
Grimm explained that when the JEDD was created in 2004, the plan was to incrementally increase the tax that workers pay by .5 percent every five years, starting in 2009, until 2024 when it would be 2 percent.
With the current income tax increase plan, the tax will increase .25 percent every three years, starting in 2012 until 2025, said Grimm.
Once the tax hits 2 percent in 2025, there will not be any further increases unless the city decides to match it to the 2029 city rate, he added.
The current income tax rate for areas outside of the JEDD in Tallmadge is 2 percent.
But, starting in January 2012, employees in JEDD businesses will see a 1 percent contribution to the JEDD income tax if passed by the Brimfield Township Trustees. The Trustees have a public hearing scheduled on the JEDD tax this week, said the mayor.
Tallmadge City Council approved the income tax increase following a public hearing during its Dec. 10 meeting.
"The Board felt it was better to take smaller steps over a longer period of time," said Grimm. "It's good for the city and the employees. It helps the city and the township because we get to use the money earlier than we would have and it is easier on the people paying the tax."
Income tax collections from the JEDD do not contribute to money going to Tallmadge public schools.
For more information, visit www.tallmadge-ohio.org/incometax.
E-mail: aharnocz@recordpub.com
Phone: 330-686-3911