Mount Pleasant takes income tax off the table
The possibility of an income tax for the city of Mount Pleasant was taken off the table at Monday’s city commission meeting.
In a two-part motion, commissioners voted to no longer explore the option of putting an income tax on the ballot.
Instead, the city will begin work to prepare a budget with a 1.5-millage increase, though a millage increase was not approved.
“The second part of the motion directs staff to create a budget with an assumed possible increase up to 1.5 mills, but, to understand that, we will look carefully at all of those expenditures and may in the end approve a budget without a mill increase,” Mayor Kathy Ling said.
Vice Mayor Sharon Tilmann said residents have been clear in voicing they would not support an income tax and would rather see a millage increase.
Tilmann said she would support a 1.5-millage increase and could also even support a two-mill increase.
“I’ve sat on the commission that increased the rate by two mills, and the citizens were happy with that because they could see where their money was spent and the results coming in as far as services,” Tilmann said.
In October, commissioners heard results from Municipal Analytics of a study conducted for the city about implementation of an income tax.
Based on a 1-percent tax rate for residents, a half-percent tax for non-residents working within the city, and the $1,000 exemption, Mount Pleasant was estimated to collect about $2.7 million from the tax.
However, the tax would cost between $240,000 and $250,000 to administer, and collection rates would vary over the first few years.
Along with concerns about costs to the city and how much revenue would actually be collected, commissioners heard from residents at a public hearing on March 11 to seek community input on the possible tax.
“I think everyone here was disappointed; we received the study on the income tax and the cost to administer the tax and the costs that would go along with it,” Commissioner Jim Holton said. “The response was very overwhelming, and I appreciate all the threats I received via email.”
All jokes aside, Holton said he is bothered by the thought of having to make continuing cuts to services.
Holton said his concern with a millage increase is the burden falling on the property owners of the community and excludes people who are not taxable, yet still using services in the community.
“I don’t know where I’m going to be on a millage increase to be honest with you,” Holton said. “I just wish things could’ve been a little different to be a little bit fairer across the board to our entire residents and non-residents of this community.”
