CENTERVILLE — The City of Centerville is asking voters to approve a 0.5 percent earned income tax increase Tuesday – the first tax increase for the city in over 30 years, according to Centerville Mayor Brooks Compton.
In the last of three community meetings designed to inform Centerville voters on the increase, city council members explained how the increase will work and why the city needs the extra funds.
“This modest increase will continue to provide the funds necessary for our police department, necessary for the proper resurfacing and paving of our roads throughout the city and to maintain the excellent city services that are provided,” Compton said.
Compton pointed out Centerville’s position as having one of the lowest tax rates in Montgomery County.
“Recognize that the city of Centerville has a low tax rate, the second lowest in the county,” Compton said.
The 0.5 percent increase will apply only to income earned in the city and will not affect interest-based incomes like those of social security, pensions and retirements, according to Compton.
With voter approval, Issue 3 will raise the current tax on earned income from 1.75 percent to 2.25 percent.
Compton told voters the increased tax rate could help curtail larger, future expenditures by the city.
“You don’t want to let the roads go so far that you have to replace the road. You let it go too far and cause for the replacement which is significantly more expensive than resurfacing and repairing,” Compton said.
