Salem council mulls tax for ballot

By D.a. Wilkinson

Voters may have the final say on the income tax increase.

SALEM — Council will meet again tonight to vote on whether a half-percent income tax will be placed before voters in November.

Council on Tuesday gave the second of three readings needed to put the issue on the ballot.

The ordinance passed the second vote by only reading the title, so there was no roll call.

Council could pass the measure with yes votes from four of the seven council members. The meeting is at 7 p.m. in council chambers.

The measure, if passed, would add the extra half-percent for four years.

Before the vote, however, Councilman Dennis Groves pushed to make the proposed tax a permanent tax.

“Our income keeps going down,” he said.

The city now divides its income tax. The general fund receives 85 percent of the revenue and the rest goes to capital improvements.

The 1-percent sales tax normally brings in about $4 million a year. Income has dropped about 10 percent from that level during the current economic downturn.

But council voted down Groves’ proposal with a 5-2 vote, with only Groves and Councilwoman Mary Ann Dzuracky in favor.

Mayor Jerry Wolford has been backing the additional half-percent proposal.

With it, he said after the meeting, the city could revert to its former split of the income tax, with 75 percent going to operating expenses and the rest to capital improvements.

City officials have said they would spend the extra revenue on patching or paving roads and working on the city’s storm sewers that have not handled heavy rains. However, there is no list of set projects if the tax makes it to the ballot or if it is approved.

If the issue doesn’t pass, Wolford was unsure what will happen.

“We can’t go another 10 percent less [in revenue] in the general fund,” he said.

Council members privately had different opinions on whether the issue has enough votes to pass tonight.

Even it does go on the ballot, the voters will have the last say.

wilkinson@vindy.com