UTICA — The residents of Utica who work outside the village will see a reduction in the credit they receive for income tax paid to another municipality.
An ordinance was approved on Monday by Utica Village Council to reduce the credit for tax paid by one-half of a percent.
Village Fiscal Officer Anna Flaherty explained the reduction would generate an estimated $56,000 for the village. This estimate was determined from taxes already processed with the exception to those residents that have not paid and those on a payment plan with the village.
“We’ve given over $112,000 in tax credit to other municipalities. If we reduce the rate it will bring us $56,000-plus dollars,” said Flaherty.
Councilman Jason Jackson objected to the reduction, and said, “I don’t think it’s a good idea to just reduce the tax on those that are working outside town. I think if it’s going to be raised then it should be raised across the board.”
Councilwoman Cathy Evans explained that if the levy from the village gets passed in the Nov. 4 election, the village would restore the tax credit.
The half percent reduction in the tax credit will go into effect Oct. 1.
Also passed during the council meeting was an ordinance creating a fund for security payments of insurance policy proceeds. The ordinance would allow the village clerk/treasurer to accept security payments from insurance companies in the event of fire losses within the village and place them into an account specifically for the purpose of deposit and administration.
In this case, Mayor Larry Friesel explained the village received a check four months ago from an insurance agency of a property that was burned. The owners have since begun to rebuild but by state law the village must hold the allocated amount until the property is suitable for living. This money is withheld to ensure that the property is taken care of if the owner should chose not to rebuild.