Salem’s new income-tax collections to begin Aug. 1

Staff report

SALEM

City council on Friday gave the third and final reading to an ordinance that will bring more money into the city’s coffers.

During Wednesday and Thursday meetings, council voted to repeal the city’s income-tax credit.

The third vote Friday allows city officials to collect a 1 percent income tax from city residents who work in other towns and pay income taxes there. In the past, the city did not collect from residents who were paying income taxes where they work.

Collections will begin Aug. 1, bringing in an estimated $350,000 a year.