Athens voters passed a 1 percent income tax levy Tuesday, meaning some Ohio University student workers now will help pay for Athens schools.The levy passed with 54.5 percent of votes for it and 45.5 percent against it.
The four-year income tax, expected to generate about $2.8 million a year, will go into effect in 2007 and replace the 5.8-mill property tax levy set to expire at the end of 2007. The 5.8-mill levy would generate about $2.5 million annually, said Superintendent Carl Martin of the Athens City School District.
The money generated by the income tax will help replace funds that the state takes away from the school district, said Athens Board of Education member Catherine Cordingley, though she could not offer specific amounts for those losses.
District Treasurer Matt Bunting has said the 5.8-mill levy collects about $154 on a $100,000 house.
Residents will pay the new tax on earned income, which includes wages, tips and net business income from self-employment, but not pensions, Social Security, disability, unemployment, welfare, alimony or interests.
All people who declare themselves residents of Athens had to pay the property tax. The new income tax, however, is paid by anyone who works in the city, regardless of where they reside. Residency determines the school district in which a person lives, so students who work in the city and live within the district ' as listed on their tax filings ' will pay the new income tax.
Employers will withhold the school district income tax. OU payroll manager John Goodwin said in a Sept. 13 Post article that the university paid about 5,000 student employees $26.5 million during the past fiscal year. About 90 percent of those students attend the Athens campus, and most use their Athens addresses on tax forms, he said.
I'm relieved that it passed because it will help give us a much steadier income to take care of the children
Cordingley said. 17
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