2017-08-09 / News

Income Tax Up In July

Revenue from the Archbold municipal income tax, which has lagged 2016 figures all year, is getting closer.

Donna Dettling, village administrator, said in the year-to-date category, the gap between the record year of 2016 and 2017 is closing, a couple of percentage points at a time.

The gap has been as high as 23%. It was 15.9% in May, 13.8% in June, and 11.2% in July.

In a memo to council, Dettling said during 2016, reporting requirements for municipal taxes were changed from quarterly (one threemonth period) to monthly.

The change, she said, “impacts the transition year of 2016.

“Included in the 2016 number are receipts from the fourth quarter of 2015 that were paid in February 2016 in the amount of $300,000.

“These receipts skew 2015 year-to-date (collections), making it impossible to properly compare 2016 to 2017,” she said.

Dettling said Patty Dominique, income tax commissioner, compared the top 10 village income tax returns that feature withholding for the periods of January through May, 2016 and 2017.

Dettling said receipts for 2017 are trending upward, in the amount of $90,000.

“This will help make up some of the difference caused by the reporting change in 2016, but not all of it,” she said.

“The good news: there isn’t a downward trend in income tax receipts for 2017 compared to 2016.”

But 2016 will always be the transition year, “and it will be necessary to note the irregularity of the data due to the reporting changes,” she said.

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