East Palestine city council changes income tax rules

EAST PALESTINE -- City residents who work outside the city must decide how they will pay city income taxes.
City council repealed a 1 percent city income tax credit for people who live in East Palestine but work elsewhere.
Connie Robinson, city finance director, said the tax goes into effect Jan. 1. The tax will be collected in 2004 when 2003 tax returns are filed.
Residents will pay the tax in a lump sum by April 15, 2004, or they can begin paying the tax now, she said.
Robinson said residents may begin making estimated tax payments in 2003 or have employers withhold the tax.
She estimated collecting 1 percent income tax from residents who work outside the city will generate about $146,000 per year.
Robinson said city officials have been seeking ways to overcome a deficit due to loss of income tax and interest on investments. She said interest income is about $180,000 less than in 2001, and income tax is down about $130,000.
She said the council also has rescinded an ordinance that gives part-time employees raises, and city employees represented by the Fraternal Order of Police and the Teamsters have agreed to wage freezes for 2003.