2016 Income Tax Revenues

I’ve talked extensively about what it will take to have sustainable revenues to pave our roads, fix our parks and offer quality of life opportunities for our residents.  We still have so much work left to do, but 2016 was a promising year.

I’ve preached economic development over and over as the long term solution to sustainable infrastructure and quality of life.   They did a pretty great job in 2016.

With the books for 2016 closed, city income tax revenue at 1.75% (1.5% income + 0.25% for public safety) was up $714,000 over 2015.   It was the highest income tax  revenue year in the past 20+ years.   There are several positive factors going on to generate that number.  First, the city worked on collecting back owed taxes with some success.  Second, we are enjoying one time construction revenues from our large projects with NTE, the AK Steel Research and Innovation Center, the new public schools and other projects.  Finally, we added hundreds of new jobs to the city in 2016.  All good things.

Let’s add some additional perspective to the $714,000 income tax number.  At 1.75% income tax rate, $714,000 in tax revenues equates to $40,800,000 in new payroll collections over 2015.   If you want to look at it in jobs, $40,800,000 in payroll at $45,000 per job equates to 907 new jobs in Middletown.

My hope is that we see that type of revenue increase for each of the coming years as we build back to where we need to be and make Middletown the best city possible.

Here’s to a great 2017!

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s