Change in Local Income Tax Credit Proposed for Hudson – May, 2016
If you live in Hudson but work elsewhere, this would affect you.
Currently residents working outside of Hudson pay no income taxes to Hudson, unless their work community has no income tax or taxes less than 2% of their wages. This is considered a 100 % “credit.” A proposal before City Council would reduce the rate of the credit to 75%. In simple terms, if you currently pay 2% tax in your work city, you would continue to pay that city 2%, plus .5% to Hudson, for a total local tax rate of 2.5%.
Many communities have changed this credit in the past few years. The article here explains some of the reasons why.
Hudson’s Charter requires voter approval to make any changes to the credit. Council is discussing whether or not to put the decision before the voters. Voter approval is not required in cities like Broadview Heights, which recently changed, or Macedonia, which is considering it. Chagrin Falls changes require voter approval, and previous attempts to change the credit have failed there.
Here is a copy of the PowerPoint Presentation City Manager Jane Howington made on April 26th:
Residents throughout Hudson are invited to discuss the tax credit issue at the next Public Information Session coming in June, date to be announced.
Budget Concerns Front & Center this Fall
Council starts the Budget process each year with a look at the Five year Forecast. This year, we started the process many weeks earlier in an attempt to give more time to Capital Expenditures and how they shape the Balance Sheet.
Council and Staff agreed to a goal of holding Net Operating Expenses constant at around $11 million gong forward for the next five years. If this is successful, this should free up funds to look at more capital items. Also new this year, an Ad Hoc Finance Committee that is meeting regularly, and their efforts have been critical to the process.
More on the Budget as we go into more detail at future meetings in October.