Wednesday, May 17, 2000
Kenton tax hike advances
Workers would pay
By Cindy Schroeder
The Cincinnati Enquirer
INDEPENDENCE — Kenton Fiscal Court gave initial approval Tuesday to raising its payroll tax by 0.15 percentage points — for a total of 1 percent — and tripling the cap on wages taxed.
Saying tax increases are “never an easy call,” Kenton Judge-executive Dick Mur gatroyd added that the changes are necessary to balance the county's upcoming budget and provide for its needs.
Increasing the transportation portion of the payroll tax would enable the county to afford the bond payments on a new $35 million jail and pay for road work, especially in fast-growing southern Kenton County, Mr. Murgatroyd said.
In a separate vote Tuesday, county officials gave initial approval to a budget that includes an additional $4.3 million in payroll tax revenues.
Although commissioners approved the payroll tax changes proposed by Mr. Murgatroyd, all three said they want to hear from residents before they cast a final vote June 6.
Commissioner Adam Koenig had proposed no cap on wages taxed, while Commissioner Barb Black had supported a graduated increase.
“This is a tough decision to go forward with, but I feel it is the right one for this county,” Mr. Murgatroyd said.
The proposed changes in the county payroll tax can be read on the county Web site, at www.kentoncounty.org.
Workers in Kenton County are taxed on the first $25,000 of annual salary. That cap, set 22 years ago, has not kept pace with inflation, Mr. Murgatroyd said.
Effective July 1, the cap would be raised to $76,200, or the Social Security maximum, if Kenton Fiscal Court gives its final approval June 6.
The changes would mean an additional $37.50 a year for Kenton County wage earners making $25,000, and $510 more a year for a worker earning $76,200, said Kenton County Treasurer Ivan Frye.
Mr. Murgatroyd said he would consider revisiting the cap in a year, if it generated more than the county needed to cover its expenses.
In a related matter, Mr. Murgatroyd said county staff has approached former Cincinnati City Manager Gerald Newfarmer about having his consulting firm audit all county departments to determine whether the county is operating as efficiently as it can.
Mr. Murgatroyd said he hopes to bring a formal proposal to commissioners by their next regularly scheduled voting meeting June 6.
Mr. Newfarmer would work with a task force headed by George Schaefer, president and CEO of Fifth Third Bank Corp.; Paul Smith, vice president of Fidelity Investments; and William Burleigh, chairman and CEO of E.W. Scripps Co.
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