Ohioans across the state can celebrate a reduction in their state income tax, but the citizens of Athens still face tax increases at the local level.
The new state income tax promises a 4 percent decrease for 2011 from 2010's, according to a Ohio Department of Taxation news release.
The state tax cut completes a multiyear plan of one of the most tax cuts in Ohio history, according to the release.
Certainly if income taxes are cut
it means more money in people's pockets. We believe the cuts will have a positive impact on personal finances and the economic climate in Ohio said Gary Gudmundson, spokesman for the Ohio Department of Taxation.
The final tax cut of the multiyear plan was originally scheduled for 2009, he said, but because of state budget constraints and the economy tanking, it was delayed.
The multiyear plan decreased the state income tax of Ohio taxpayers by 21 percent, said Gudmundson, as rates reduced 4.2 percent for five years.
The tax reforms have saved Ohioans about $2.1 billion annually, with this year's decreases adding another $400 million, according to the release.
Although the state income tax has been significantly reduced, the local taxes are increasing.
Cities and municipalities in Ohio have the legal right to impose their own income tax said Gudmundson. The state has no involvement with that tax.
Luckily for Athens citizens, the state tax decrease far outweighs the local increase.
This year, the local income tax raised .1 percentage points, said Kathy Hecht, Athens City Auditor. Anyone who lives or works in the city of Athens can expect that amount to be withheld by his or her employer.
The projected raise is expected to earn $579,000 in extra income for the city, said Hecht, adding that it will all be used on street rehabilitation.
Hecht did not know on which specific projects the money would be spent.
Although much of the street renovations are funded by grant money, the city is expected to match all money granted for the projects, said Hecht. This was a reason for the tax increase.
We have done a lot of improvements to Richland already
and there will be improvements done on Mill Street
Hecht said.
@ThePostCity
1
News
Rachel Snively
