Town Tax Sees Largest Year-To-Year Decline
Largest Drop In History

Just as Archbold Village officials predicted, the gross municipal income tax collection for 2007 was about $400,000 shy of the total collection in 2006, the largest year-to-year decline in the 41-year history of the tax.

In 2006, the income tax generated total gross revenues of $4,876,555.99. In 2007, the final year-end was $4,465,138.76.

That's a shortfall of $411,417.23, or roughly 8.44%, the largest ever in terms of dollars and percentage points.

In 41 years, the tax has only failed to collect more than it did the previous year six times. Prior to the 2007 results, the largest every shortfall was 1989, when collections were off $136,051.79, or about 7.84% from 1988.

The total 1988 collection was $1,735,222.89; the total for 1989 was $1,599,181.10.

Other Shortfalls

In 1994, the municipal income tax generated $2,673,785.90. The following year, 1995, gross tax revenue was off by about 4.06%, or $108,526.13. The gross 1995 collection was $2,565,259.77.

The next year, 1996, it was still shy of the 1994 collection, by $33,813.88, or roughly 1.26%, but the 1996 collection was almost 3% ahead of 1995.

In 1987, the municipal tax raised $1,768,956.91. The next year, 1988, total revenue generated by the tax was $1,735,222.89, a shortfall of $33,734.02, or 1.91%. The next year, 1989, the tax was down by the above-mentioned $136,051.79.

The 1989 collection was shy of 1987 by $169,785.81, or 9.29%.

By 1990, total revenue generated by the tax that year was more than $1.8 million, surpassing the previous record level in 1987.

The municipal income tax topped $1 million in 1982, with gross revenue of $1,009,441.67. In 1983, revenue dropped below $1 million to $99,640.47, a drop of $11,801.20, or about 1.17%. The next year, 1984, saw the tax generate more than $1.2 million, an almost 29% increase.

The first time income tax revenue failed to top the previous year was 1975. That year, the income tax raised $351,513.83, falling short of the 1974 collection of $364,240.27 by $12,726.44, or about 3.49%.

Lifetime

The village began collecting the 1% tax on Jan. 1, 1967. A quarter (.25%) of a percentage point tax was added in July 1976. If was rolled back to an eighth (.125%) of a percentage point in July 1986.

In 2000, voters approved 1 1/4% (1.25%) for the village, and a quarter (.25%) of a percentage point for the park system.

Over the 41 years the municipal income tax has been in place, the tax has raised $81,382,737.34.

Of the total, $69,587,822.15 has been allocated for village capital improvements. Another $11,694,915.19 has gone to parks and recreation.