North Canton council votes to place 0.5-point income-tax increase on May ballot, signals it will not seek some levy renewals

The North Canton City Council voted to put a proposed 0.5 percentage-point increase in the city's municipal income tax on the May 6, 2025 special-election ballot and adopted a companion resolution saying the council will not seek renewal of several existing levies if voters approve the change.

City staff read the ordinance amending Chapter 192 to raise the municipal income-tax rate from 1.5% to 2%. City staff member Ben told council the comparison materials the city circulated compare two future funding scenarios'future property-tax levies versus the income-tax increase'and "it is not a comparison of property taxes as it exists right now versus an income tax increase." He added the city has posted a calculator on its website so residents can estimate the change for different household incomes.

Council members framed the measure as a way to fund general municipal operations, maintenance, equipment and capital projects, including work on the planned fire-station project. But several members raised concerns about street maintenance if the council follows through on a stated intention not to seek renewal of current levies. One council member said removing levies would "shortchange potential roads" and proposed keeping a small dedicated millage for streets; another council member noted the street-paving levy currently brings in approximately $388,651 annually.

Council also debated timing for construction funding if the tax measure passes: finance staff explained the city could issue one-year bond anticipation notes to begin construction before income-tax revenues are collected, with longer-term bonds and payoff timing dependent on final costs. Staff estimated initial note issuance could occur in summer 2025, with longer-term financing expected by spring 2026.

On voice votes the council adopted the ordinance on first reading, passed Resolution 08-2025 directing the board of elections to place the question on the May 6, 2025 ballot, and passed Resolution 09-2025 stating the council's intent not to seek renewal or replacement of the street-paving, EMS operating and fire-suppression operating levies if voters approve the income-tax increase. The resolution text and council discussion included levy figures cited in the meeting transcript (fire operating 1.5 mills, EMS operating 3.3 mills, street paving 1 mill) and staff flagged a roughly $34,000 projected reduction to street funding under one scenario.

The council emphasized that the ordinance would only take effect if approved by voters. No final bond issuance or levy changes will occur unless voters approve the ballot question and subsequent actions are taken by council and staff. The council will continue public outreach and has provided an online calculator for residents to model potential household impacts.