Monroe County 0.2% prison income tax hearing set for Sept. 16, coupled with brief drop in corresponding tax rate – The B Square

Monroe County aldermen have set the stage for formal public comment on a proposal to increase the local income tax (LIT) for prisons by approving an announced tax rate of 0.2 percent for a public hearing on September 16.

This is the maximum prison sentence that can be imposed on Monroe County residents. Currently, this rate is 0.01 percent.

The reason for increasing the LIT rate in prisons is to fund a new prison and possibly a co-located justice complex, with a total construction budget of up to $200 million.

The decision of the seven-member district council on Tuesday evening was not unanimous – the only dissenting opinion came from Kate Wiltz.

Wiltz and Jennifer Crossley both said there are too many unanswered questions, including determining the size and location of a jail. Councilwoman Mary Hawk was committed to keeping the general income tax rate as low as possible.

But Crossley and Hawk were both willing to set the public hearing on the LIT rate of 0.2 percent in prisons in order to obtain a formal public comment on the issue as soon as possible.

County councillors who voted for the announced 0.2 percent rate for the LIT prison are not required to support that rate if the vote takes place sometime after the September 16 hearing.

As part of the same measure, the council also voted Tuesday to establish a new, lower rate of 0.03 percent for the “special purposes” category of the local income tax, which currently funds the operation and maintenance of a youth correctional facility and other facilities providing services to youth.

It was Hawks' urging during Tuesday's meeting that led Councilman Geoff McKim, who fully supported the 0.2 percent LIT rate in prisons, to calculate a lower rate for special-purpose LIT based on the Youth Authority's recently submitted 2025 budget proposal.

The combined effect of an increase in the prison LIT and a decrease in the special LIT would be a 0.135 point increase in the local income tax paid by Monroe County residents.

The district councillors do not want to fear a long-term retention of the special purpose tax rate of 0.03 euros, because in the long term this would not be sufficient to finance youth welfare services.

However, it would allow for a reduction in the currently high special purpose LIT fund balance. And the lower special purpose rate would, at least temporarily, provide taxpayers with a relatively lower overall rate than would be possible by increasing the prison LIT rate without adjusting the special purpose LIT.

It's the same logic the City Council used last year when it first set a LIT rate for prisons at 0.01 percent and reduced the LIT rate for special purposes to 0.085 percent. The net effect of this action was no change in the overall income tax paid by Monroe County residents.

The LIT special purpose tax rate will not increase in the future unless a future Council decides to increase it.

McKim expressed concern about the county council situation, as he did not run for re-election this year and will not return to the council in 2025. That means he will not serve on the county's finance committee when it comes to raising the special purpose LIT rate. “I'm just nervous because I won't have the opportunity to vote on raising it again next time,” McKim said.

During Tuesday's meeting, some disagreement arose among council members over the scheduling of the hearing and the possibility of reducing the rate after the hearing. These issues had already been discussed at a council meeting in mid-August.

What seemed to convince council members was Council Member Cheryl Munson's idea that the council should hear the public's opinion in a formal form as soon as possible. This idea was echoed by Council Member Peter Iversen, who said, “I really appreciate Council Member Munson's wisdom on this matter – the opportunity to announce a tariff tonight allows us to hear the public's opinion directly, and that is what we should be doing anyway.”

In order to raise additional revenue from an increased LIT rate for prisons from 1 January, the Council must act by 1 November.

With a tax rate of 0.2 and taxable income of $20,000 per year, the value is $40 per year.

The current local income tax rate for residents of Monroe County is 2,035 for all categories
Percent.

The reason county commissioners want to raise money to build a new jail is because the Monroe County Jail is currently operating under a 2009 settlement with the ACLU, which filed a lawsuit alleging overcrowding at the jail. The settlement has been extended several times.

Published
27 August 202428 August 2024