Council mulls income tax rise

STAFF REPORT

SHARON, Pa. — City council will consider a 2009 budget proposal that would not raise real estate taxes.

Council might instead raise the city’s income tax and reduce the property tax.

Mayor Bob Lucas’ first budget plan, which included a property tax increase of 4 mills, or 10 percent, is still on the table, he said Monday. But beside it now is a plan that eliminates a $130,000 shortfall by using unappropriated money in the capital improvements fund, he said.

The budget balances without the tax increase, he said, and council can, under its home-rule charter, raise the income tax instead.

Lucas is proposing that council lower the property tax from 39.5 mills to 21.5 mills, and raise the wage tax from 1 percent to 2.25 percent.

“So it’s revenue-neutral and a way to give a tax break to businesses here in troubled financial times,” Lucas said.

Lucas said the proposal also lightens the tax burden for senior citizens and puts more of one on renters.

Council has already held two budget hearings on Lucas’ first proposal in which members tried to find ways to trim the property tax increase.

Council meets at 6:30 tonight and could pass a budget, though it has until Sunday to do so.