By John Kiesewetter
The Cincinnati Enquirer
MIDDLETOWN - Up to 4,000 residents could be paying city taxes this year if City Council approves a reduction in the 0.5 percent local income tax credit.
The financially strapped city could collect about $570,000 by taxing residents who work outside the city and pay an earnings tax to another municipality, said John Lyons, city finance director.
But that amount is about half the $1.1 million the city had expected to raise from the move when it was tabled by council in December, Lyons said.
The estimated revenue was revised after reviewing city income tax filings this year, he said.
The loss of jobs at AK Steel, paper mills and other companies in recent years has made Middletown a bedroom community. U.S. Census data indicates that 10,600 residents work in the city, while 12,400 residents are employed out of town.
Council can roll back the local tax credit without placing the question on the ballot, Lyons said.
At the same time, council also is considering a 0.5 percentage point increase to the city's 1.5 percent income tax.
Voters would have to approve the tax increase, which would raise about $5.8 million.
Council read the ordinance for the first time Tuesday. A second reading and vote are needed for the ordinances to be adopted.
City Manager Ron Olson has projected a $2.5 million budget deficit for next year, after council made deep cuts in all departments for the 2004 budget.
He was too good to be true
Alert gambler ended the hunt
Critics: Mentally ill shouldn't have gun
Soldier's family stoically bore burdens
Road work affects 10 spots
Women's heart risk higher
State gives Mason 34 acres
IN THE TRISTATE
Batavia's levy victory called model for schools
Two indicted in child-related incidents
Lost people, lost jobs spur business study
Driver guilty of dog distractions
Empire fiasco's principal sues city
Frailey looks at costs and returns
Franklin wants community groups to save activities
Popular bar faces crowding charge
55 school districts to take part in job fair
Luken pushes tax breaks for LabOne
Residents could owe city taxes
Packages keep coming
Sewers inadequate for proposed houses
Pool hours, parks funds cut by Mount Healthy
More fixes for charitable gaming statutes
Oxford argues who can write tickets
Robotics used in prostate surgery
'Forum' and 'Birdie' among musical choices
Public safety briefs
Bronson: Whose idea was it to hire these people?
Crowley: Surprisingly, redrawn district gives Democrat the advantage
Good Things Happening
Francis Williams served the poor
First Baptist ousts its dissidents
Church in pain seeks healing
CovCath gets loud sendoff
House balks at Fletcher plan
TV ex-anchor testifies in soldier's case
Chase leaves wreck trail
Teen center opens today