2018-01-10 / Front Page

Village Income Tax For 2017 Tops $4.5 Million

The total collection from the Archbold Municipal Income Tax during 2017 topped $4.5 million, down almost 7.8% from the record year of 2016.

But Donna Dettling, village administrator, said she is satisfied with the 2017 results.

For several months, Dettling has been cautioning Village Council that the 2016 total collection of more than $4.9 million was an anomaly because of a change in state reporting requirements.

For years, Ohio law required income tax results to be reported on a quarterly (once every three months) basis.

Then the requirements changed from quarterly to monthly.

Dettling said 2016 was the transition year, the first year for monthly reports.

In a report to council, Dettling said the change “impacted the transition year of 2016.

“Included in the $4.9 million receipts for 2016 are receipts from the fourth quarter of 2015 that were paid in February 2016 in the amount of $300,000,” she said.

She confirmed the $300,000 figure with Patty Dominique, former head of the income tax department, now retired.

“Patty confirmed there were receipts from 2015 that ended up in 2016 due to the transition to monthly reporting,” Dettling said.

“She gave me $300,000 as a guess. It could have been more, and it could have been less.”

Actual results for 2015, 2016 and 2017 were $3,955,875.58, $4,936,066.89, and $4,557,513.85, respectively.

“When I adjust 2015 receipts up $300,000, and reduce 2016 results down $300,000, it looked like this: 2015– $4,255,876; 2016– $4,636,067,” she said.

With 2017 coming in over $4.5 million, 2016 was still ahead, but the $4.9 million figure is brought more in line with other years.

Late in 2016, Dettling estimated the 2017 year-end tax collection figure would be $4,562,099, only $4,585 more than the actual figure.

The Great Recession

A time of economic downturn, known as “The Great Recession,” started in December 2007 and ended in June 2009, information from the Federal Reserve Bank of New York states. It was the longest period of recession since WWII.

Locally, the great recession peaked in late 2009- early 2010. Fulton County unemployment hit a high of 16% in January 2010.

Village income tax receipts began falling.

In 2006, total revenues peaked at about $4.88 million.

Over the next four years, tax revenue fell anywhere from 12.4% to 5.82% per year.

The period of 2007-2010 was the first time the income tax failed to outpace the previous year more than twice in a row since the tax was first established just over 50 years ago.

The situation reversed itself in 2011, 2012, and 2013. Income tax collections fell off in 2014, then hit a glitch in 2015, falling to about $3.7 million. Collections increased in 2015, then hit the new record in 2016.

Previous Performance

The municipal income tax was first established in 1967.

Since then, the tax has generated a total of $120.8 million, which is generally spent on capital projects such as building new streets or reconstruction.– David Pugh

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