Tax increase could cost Warren money

WARREN -- The city would lose between $125,000 to 150,000 per year if a proposed 0.5 percent Lordstown tax increase passes, Warren Tax Administrator Tom Gaffney said at a city council finance meeting Wednesday.
Gaffney based his projections on 2005, the last year that full taxes were recorded.
Warren will lose about half of the projected yearly shortfall in 2006, if the tax goes into effect as expected on July 1, Gaffney said.
Currently, GM withholds 1.5 percent of city income taxes for Warren and 0.5 percent for Lordstown workers. If the tax increase passes, 1 percent will go to each community.
The city will lose more tax revenue if GM closes its third shift, Finance Chairman Alford L. Novak said. Revenue will also depend on how many contract buyouts GM offers to workers who live in Warren, Novak said.
It is impossible to calculate how the layoffs or retirements would affect city finances, Gaffney said.
The finance committee and city council will look for ways to make up whatever revenue decrease results from changes at Lordstown and GM, Novak said.
agarrett@vindy.com