RELATED: New Carlisle says income tax issue could lead to ‘humongous’ cuts
New Carlisle residents will head to the polls Nov. 7 to vote on the issue, which would require the city to give a 100 percent income tax credit to residents who work in another city. Currently New Carlisle taxes all residents 1.5 percent, regardless of where they work.
Some cities give credit for taxes paid elsewhere. Columbus provides a 100 percent credit and Springfield gives a 50 percent credit to its residents. New Carlisle was projected to take in $1.64 million in local income taxes this year overall.
About 60 percent of the income tax collected by New Carlisle would be eliminated if voters say yes, according to city campaign literature. The reduction would translate into many services being cut, City Manager Randy Bridge said.
“We urge our city residents to vote no,” Bridge said. “It will have devastating effects.”
The current tax money goes to many services, including paying for deputies to patrol New Carlisle, parks and the pool. Right now four deputies work in New Carlisle. If the ballot passes, Bridge said that will be reduced to one deputy.
“Less income tax means less police,” he said.
MORE: Voters to decide on big change to New Carlisle taxes
Kelli Bartlett collected the signatures for an initiative petition and has been the driving force to get the issue on the ballot. People are overtaxed, she said, and New Carlisle residents cannot afford to keep paying.
“I have heard residents complain about this for years,” she said. “People who work in other cities are overburdened.”
Donna Koogler is a city resident and she plans to vote for the issue. She said young people who are trying to raise a family are especially burdened by the taxes.
“Most people in this town don’t make much,” she said. “It’s not that they don’t want to pay it but they have to choose between taking care of their family or paying.”
It’s important to remember that not all income tax the city gets will be taken away, Bartlett said.
But Bridge said what money would remaining if the issue passes isn’t enough to keep current city operations going. Residents get a lot of services for that 1.5 percent tax, he said, and he wants to see the city continue to provide limb, brush and leaf pickup, snow removal at 2-inches, consistent mowing services, and holiday lighting.
Also, the city administration building might have to reduce hours to potentially 20 house a week if the issue is approved, he said.
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“These cities that have a tax credit, if that was passed by an ordinance, that says to everyone that city has enough industry to make up,” he said. “We are a bedroom community, with little to no industry. We got some industry but not a lot and most of our people just live here. They don’t work here.”
The city has worked hard to get the message out to its residents, Bridge said. It’s mailed information to every resident and business in the city, he said, and city employees, council members and volunteers have tried to visit every home to discuss the issue. It’s also held town halls and walk-in sessions for residents to get more information.
Elections can have twists and unexpected results, both Bridge and Bartlett said, and therefore neither could predict what the results will be.
“I received a pretty favorable response to the people I have spoken with,” Bartlett said. “There are certainly those who are not in favor, but those are people who are not paying two income taxes.”
By the numbers:
$1.64 million: Annual income tax the city of New Carlisle will get in 2017
60 percent: Expected income tax revenue cut if the issue passes
35 to 40 percent: projected cuts in full-time employment by the city if the issue passes
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