Xenia council advances higher revenue options: credit reduction amended and staff to rework ballot language for income tax increase
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Summary
Council amended an introduced municipal income tax credit reduction to the larger (0.75 percentage point) option and directed staff to rework a proposed 0.24% income tax ballot measure for streets; staff estimated the ballot measure could raise about $1.9 million annually if adopted by voters.
Council considered several revenue options Dec. 11 as staff presented three ways to reduce the city's non‑refundable credit for tax paid to another municipality. The options would lower the credit from the current 1.5% to 1.25%, 1.0% or 0.75%, with estimated first‑year revenues of roughly $374,000, $760,000 and $1,139,000 respectively.
During discussion a motion was made and adopted to amend the initially proposed quarter‑percent reduction to the 0.75% reduction. Councilmembers debated first‑year collection lags, the process for notifying other taxing jurisdictions and the mechanics for refunds or rescissions if the council later restores the credit.
Separately, staff presented draft ballot language for a proposed 0.24 percentage‑point municipal income tax increase to fund long‑term street rehabilitation. Staff estimated that a 0.24 percentage‑point increase could generate approximately $1.9 million annually if approved by voters; council members discussed whether to ask voters for a 5‑ or 10‑year duration and instructed staff to rework and reintroduce ordinance language at the next meeting so the proposal can be properly published and vetted.
Council members emphasized public transparency: several warned that multiple tax steps in quick succession could appear confusing and asked staff to provide clear notice and documentation to residents prior to another meeting.