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Toledo City Council to refer income tax increase proposal to committee

11/26/2019

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By Tim Schneider, Toledo Regional Chamber of Commerce
At its regular meeting at 4:00 p.m. on November 26, Toledo City Council is expected to refer to committee Ordinances 543-19 and 544-19 regarding Mayor Wade Kapszukiewicz’s request to submit for the March 17 ballot an increase of the city’s temporary income tax from 0.75 to 1.25 percent. If ultimately approved by Toledo voters the tax would be for a period of 10 years and bring the city’s total income tax rate to 2.75 percent effective July 2020. The proposal would allocate 40 percent of the revenue for capital spending and 60 percent for operations, and would eliminate the ability to transfer the capital portion of that revenue for operating expenses. A hearing on the ordinances will take place before Council’s Committee of the Whole at 4:00 p.m. on December 3. Council must act by December 18 in order for the issue to be placed on the March ballot.
​At the session Council is expected to vote on the following items:
 
  • Resolution 539-19 which would join the Toledo Regional Chamber of Commerce in recognizing November 30 as Small Business Saturday. Chamber member Tim Friedman of Culture Clash Records will be present for the recognition. Small Business Saturday is an annual shopping tradition dedicated to supporting small businesses in communities across the nation.
  • Ordinance 541-19 which would prohibit discrimination against natural hair types and styles or wraps associated with race, culture, or religion under city employment, housing, and public accommodation discrimination code. The ordinance would add these categories to existing discrimination classes under these sections.
  • Ordinance 549-19 which would establish a Tax Increment Financing area for portions the Marina District in East Toledo mostly bounded by Main Street, Riverside Drive, Morrison Avenue, and Front Street. Payments in lieu of property taxes on improvements to parcels would be made into a fund designated for infrastructure upgrades for a period of 30 years. Also, payments from the fund would be made in lieu of taxes to Toledo Public Schools as part of an agreement with the school district.
  • Ordinance 538-19 which would establish a revised rate design for Toledo and its regional water customers for water service for 2020 through 2023. The proposed rates tie customer costs more directly to water use, support continued infrastructure investment, and add water affordability measures. The ordinance comes following Toledo’s customer communities signing 40-year uniform contracts with the city and forming a Regional Water Commission to set rates and make capital improvement decisions. Additional information concerning rates will be forthcoming in the next newsletter.
 
Ordinance 559-19, which would classify food and beverage retail locations that occupy less than 11,000 square feet as convenience stores, is expected to receive first reading. Current zoning code classifies as convenience stores locations that occupy less than 5,000 square feet. The ordinance is aimed at expanding regulation to larger stores in the city that operate under a convenience store business model.
 
Ordinance 536-19, which would authorize a 10-year property lease agreement with Arms Dock, Inc. for enclosed storage of the city’s bulk salt in an existing building at 1900 Summit Street, will be held until Council’s December 10 session. Under the ordinance, Arms Dock would be paid in annual payments of $105,000. The bulk salt is currently stored along the Maumee River near downtown where the new Nautical Mile project will be completed.
 
All Council meetings, including committee hearings, are held in Council Chambers on the first floor of One Government Center located on Jackson Boulevard in downtown Toledo.

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​​​Tim Schneider
​
​As Manager for Local Government Advocacy, Tim Schneider advocates for local policies and laws that safeguard and foster a pro-business environment in the Toledo Region. Tim has more than 10 years of legislative and public policy experience with the local, state and federal levels of government.
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