The Village Council has been completing its annual income tax rate review to determine the income tax rate for the upcoming year. After thorough review, Council unanimously passed an emergency Ordinance at the December 19, 2022 Council meeting to reduce the income tax rate from 0.525% to 0.475%.
This reduction was based on the following factors: 1.) higher than anticipated income tax receipts in 2021 and 2022; 2.) higher than anticipated year end balances; and 3.) conservative spending; and 4.) COVID-19 related reimbursements received 2020-2022.
Notwithstanding the reduction in the income tax rate, budget projections continue to forecast sufficient fund reserves over the next few years. In addition, the projections account for future known and estimated liabilities, contingencies associated with the current volatile market and inflationary conditions, a viable ten-year capital improvement program centered on significant infrastructure needs, and cash flow stability.
With the emergency legislation, the new rate will go into effect January 1, 2023 for the upcoming 2022 tax filing season.
For questions regarding the tax rate reduction or additional information regarding income tax filing, please do not hesitate to contact Scott Gully, Finance Director/Tax Commissioner, at (513) 561-6500.