By STEVE HUSZAI
Staff Writer
WOOSTER -- Income tax collections posted increases in revenue for the city's general fund in 2011 over 2010 numbers. But the increase was not enough to fill giant gaps in revenue.
Last year, the city grossed $9,425,474, which is more than 7 percent up from 2010 when $8,795,369 was collected, said Andrei Dordea, finance director.
The city also gives refunds for folks who pay too much in taxes. In 2011, the city refunded less than the year before when $214,771 was returned to businesses and individuals, compared to $282,043 in 2010.
With the combination of a higher gross and a decrease in refunds, the city collected more in net receipts last year versus 2010 -- $9,210,703 in 2011; $8,513,326 in 2010.
Overall, Dordea said the city has made a nice comeback since gross income tax collections bottomed out in 2009 at $8.4 million.
The increased collections are a combination of two things the finance director explained -- it shows employees in Wooster are making more in wages and there also are more employees than in 2010.
According to the Department of Job and Family Services, Wayne County posted a 6.6 percent unemployment rate in December (7.6 percent in the state), down from 8.4 percent the year before.
Businesses also are experiencing an increase in net profits since they must file, too.
Dordea said when you scratch below the surface of the gross numbers the picture becomes more clear.
First, net profits posted a nearly 45 percent increase in 2011 to 2010 (these are profits from local businesses).
Last year the city collected $1,192,924 in taxes from net profits; 2010 saw net profits at $823,135.
Withholdings, which are income taxes held from employees by their respective employers, also posted gains last year with $7,425,143, a 4 percent gain on 2010, when $7,152,347 was collected.
Individual filers, who make up a combination of Wooster residents who are self-employed or work outside of the city, were down 1 percent to $807,406, compared to $819,886 in 2010.
Looking at gross collections, Dordea said extrapolated out means the city of Wooster is a gross economic engine of about $950 million.
But Dordea said the city is losing revenue from the state faster than collections are growing.
Consider that net income tax receipts grew by 8 percent, or $697,377 last year. The flipside is the city lost roughly $168,000 from the tangible personal property tax in 2011. Wooster received $92,500 through the TPP tax, which is already a decrease from the original scheduled phaseout before the state accelerated the phaseout of this reimbursement to local communities.
"If we grow by 2 percent (what Dordea is projecting) in 2012 in income tax collections that would equate to $189,000 ... it would take a few years to make up what we are losing," Dordea said, illustrating the reason an income tax is being floated by city officials as a solution to the budget gap.
He said the estate tax will be finished Jan. 1. The city averaged $1 million a year through the estate tax. Not to mention the local government fund is taking a sizable hit (50 percent) from $1.2 million to $600,000 this year the city will receive from the state.
"If you are sitting on enough cash then it's OK, but we have financial ordinances which state we must hold a certain number of days in cash," the finance director said.
"We are very happy how the local economy has performed ... but that's our culture here to be pro-business," Dordea said.
Dordea also pointed out the highest grossing year for income taxes when Rubbermaid was based in Wooster was in 1999, the year when top executives were bought out. Gross collections went from $7.8 million collected in 1998 to $9 million in 1999. In 2000, gross collections fell back to $8.05 million.
Reporter Steve Huszai can be reached at 330-287-1645 or shuszai@the-daily-record.com. He is @GeneralSmithie on Twitter.
Source: http://www.the-daily-record.com/news/article/5153003
constitution constitution james carville james carville rimm brad pitt brad pitt
No comments:
Post a Comment