“They very loudly and very largely told us no,” said board member Lori Raleigh.
The board passed two resolutions of necessity for tax levy purposes during a Monday special meeting at Franklin High School.
One is for a traditional income tax of approximately 1% that would raise an estimated $6.3 million annually and the second is expected to be a 1.25% earned income tax that would raise approximately $6.7 million a year, said district Treasurer Kevin Hawley.
Credit: Jen Balduf
Credit: Jen Balduf
The Ohio Department of Taxation will review the figures and percentage for certification. Although the board submitted two income tax options, only one can be placed on the ballot.
The board is continuing its discussion to the July 21 meeting, at which time it will make a decision.
“I don’t want to rush something that is so important to the future of the district,” said board President Rachel Ruppert-Wolfinbarger. “So if we can, take a little time and not compromise any of our timeline.”
Traditional income tax
The traditional school district income tax uses the same income base as the state of Ohio’s income tax, according to the Ohio Department of Taxation’s guide to school district income tax.
Taxable income includes wages, salaries, tips, interest, dividends, unemployment compensation, self-employment, taxable scholarships and fellowships, pensions, annuities, IRA distributions, capital gains, state and local bond interest (except that paid by Ohio governments), federal bond interest subject to state tax, alimony and all other sources.
Income not taxed includes Social Security benefits, disability and survivor benefits, railroad retirement benefits, welfare benefits, child support, property received as a gift, bequest or inheritance and workers’ compensation benefits.
Earned income tax
Taxable income includes only wages, salaries and other compensation of the residents of the school district.
Income not taxed includes all other types of income such as interest, dividends, capital gains and pensions.
If approved, employers would be required to withhold the tax and make payments, with employees responsible for reporting the correct school district to their employer, according to the state tax department.
The next board meeting is 6 p.m. in the media center of Franklin High School, 140 E. Sixth St.
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