Sarantou: The case for renewing the 3/4 percent tax
Written by George Sarantou | | george.sarantou@toledo.oh.govIn 1983, Toledo voters passed the first 3/4 percent income tax. Back then, the City of Toledo employed 2,963 people. The unemployment rate was 10.6 percent. The population was 354,635 and the city was comprised of 84 square miles. The three-quarter percent brought in $16.5 million and the total 2.25 percent paid for police, fire, refuse and most other general fund departments.
Fast forward to 2012 — the City of Toledo employs 167 fewer employees than it did in 1983. The unemployment rate is 8.7 percent for 2012. The population is 287,208 and the city is still comprised of 84 square miles. The three-quarter percent brings in $51.5 million and does not quite pay for the fire department, which has a budget of $60.2 million. The police budget for 2012 is $73.4 million.
Nonemployed seniors did not pay the 3/4 percent tax then and still do not today. It is not paid on property tax, pensions, social security, dividends, interest, annuities or capital gains. The three-quarter percent is paid on earned income only.
Sarantou
This means more than 55 percent of Toledo does not pay income tax. The 2.25 percent income tax rate has not increased since 1983. Most other levies have sought increases; schools, library and the zoo have all increased their millage requests throughout the years and Toledo has remained constant.
Toledo City Council, along with the administration of Mayor Mike Bell, has made public safety a priority. Therefore, though there have been cutbacks in general fund jobs due to the loss of solid waste and retirements, upcoming classes are being formed to make sure public safety can keep in step and properly protect the citizens.
Currently we have a police class that will graduate 40 officers this May. A fire class of 30 will begin this December. Additionally, another police class of 40 will begin this September. These classes will help us to increase our vital safety forces. However, we need additional police and fire classes in 2013 due to many upcoming retirements.
In the general fund only, employees in the City of Toledo are now 1,596; in 2002 it was 2,126. This is a reduction of 530 employees. Public safety comprises 1,351 general fund employees or 85 percent of the general fund employees. That means the other 25 departments including human resources, building inspection, finance, council, economic development, parks and taxation operates on 15 percent of the general fund budget. In all 25 departments there are only 245 employees; this for a population of 287,208.
On March 6, voters of Toledo will decide whether their mayor and Council have been effective stewards of the treasury during the greatest recession since the depression. We have not raised the income tax rate and we have reduced our employees significantly.
Today, Toledo has 9.1 employees per 1,000 people compared to Akron, (10.4) Columbus (14.1), Dayton (10.6), Cincinnati (17.4) and Cleveland (21.8). Our bond ratings have held steady and Moody’s and Standard & Poors have upgraded Toledo from a negative outlook to stable.
These are historically very challenging economic times but Toledo is much stronger today and our economic future is improving. Jeep, Powertrain, Hollywood Casino, the University of Toledo and many other businesses are leading our growth. With your support of the renewal of the 3/4 percent we can continue to make Toledo a great place to live, work and raise a family.
George Sarantou is an at-large councilman for the City of Toledo. He is chairman of its HR, IT and Finance committee. Email him at george.sarantou@toledo.oh.gov or call him at (419) 245-1050.
Tags: 3/4 percent tax, City of Toledo, George Sarantou, Mike Bell
Mr. Sarantou, with all due respect, that was the worst case made for renewing the 3/4 percent income tax. First of all, the fact that 55% of Toledo does not pay income tax makes the case for me to vote DOWN the 3/4 percent tax. Why should 45% of Toledoans pay to support a system that supports 100% of its’ citizens? The City of Toledo has NO RIGHT to take money earned by me; it amounts to legalized theft. Lastly, because of the vote to approve 150 police state cameras to be planted around the City of Toledo I will vote no this Tuesday and hope that others open their eyes and do the same.
This comment was posted on March 2nd, 2012 at 3:02 pmI had to do a double take on the title of this article, “Sarantou: The case for renewing the 3/4 percent tax”, because every argument in it seemed to make the case AGAINST the 3/4% renewal. Chief among is the description of how many employees the city has (down 530 since 2002). This is great news! The city is not doing more with less, but less with more (less employees but more per employee regarding tax revenue), so no additional revenue is needed. Where has the increasing money been going while the city work force has been decreasing?
Also, at the very beginning of the article the point is made about the number of people living in the city now vs. 1983 and how in 29 years over sixty-seven thousand people have left. One can only wonder why? Only when government is involved can one expect higher prices (taxes) for decreasing services (less residents).
The bottom line is this: there are less people living in the city, less employees of the city, and less people paying the tax than those reaping the “benefits.” These all are excellent examples of why a “NO” vote on the renewal of the 3/4% income tax makes the most sense.
This comment was posted on March 5th, 2012 at 5:07 pm“Why should 45% of Toledoans pay to support a system that supports 100% of its’ citizens?” // It’s called civic responsibility. Toledo creates a climate for strong businesses, one of which employs me, so I’m happy to contribute to the mission of the city. If you want to live in an unfunded, crime-ridden, economically dead wasteland, move to Youngstown.
This comment was posted on March 6th, 2012 at 1:40 pmEli Sizemore
No, my civic responsibility would entail running for office and representing my constituency. My civic responsibility would entail volunteer work at local charities, non-profits, and other such volunteer based work and/or donating to local causes. Civic responsibility does not entail paying a tax and wiping your hands clean. That’s laziness. That’s complacency. Your logic is absolutely abysmal.
Toledo does not create a climate for strong businesses. Unlike you who is employed, I’m an employer, albeit a small one. I just had a discussion with a friend opening a business downtown who is being delayed by a regulator with the city that will most likely cost him in additional capital at worst and at best delay his opening. Businesses all over the city run into crap that either cost them in additional capital or delay their opening or prevent them from opening at all. There’s plenty of red tape regulation and costs the city has that makes it difficult, not to mention we had two bonehead Mayors previously that would go on the attack businesses (Columbia Gas) when things didn’t go according to their plans (temper tantrum).
I do not have a social responsibility to pay into the coffers of a government that is unable to maintain basic infrastructure, yet embarks on failed development projects. I do not have a social or civic responsibility to pay into the coffers of a government that is migrating to a police state with surveillance cameras that DO NOT PREVENT CRIME.
You have some horribly failed assumptions that because government doesn’t tax enough and/or doesn’t spend enough, that crime goes rampant and we become an economic dead zone? It’s almost daily we here of at least 2 or 3 shootings within the city, so even with your “funded city” argument we ARE crime-ridden. The city has LOST population and especially lost businesses WHILE we’ve had an income tax, again, showing your logic as absolutely false.
Eliminating the income tax, a tax more than half of Toledoans don’t pay into, frees up capital that I can either spend here at other local businesses or invest in my own business to help grow it.
By the way, hey, if you DO want to ensure civic responsibility through taxes, why not do a flat tax that EVERYONE must pay into? Or how about a sales tax? Why don’t low income individuals have to do their part and have some civic responsibility? Ha, again, so much faulty logic with your argument its laughable.
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