“Right now it’s dead,” Reneer said after the meeting.
In lieu of finding a solution that would increase tax revenue, several council members said they’ve been working on proposals that could save the village money instead and they plan to discuss those options at future meetings.
St. Paris currently taxes residents 1 percent on their earned income, but gives a 100 percent credit to anyone who works outside the village and pays taxes to another city.
As the council discussed ways to increase revenue this summer and brought up the possibility of raising the income tax, some residents and council members said it wasn’t fair that only a small percentage of people who work within the village should have to pay.
“The populace as a whole is living here … but not paying for the upkeep,” Council Member Brad Kennedy said when introducing the measure in August.
Many other municipalities have done away with income tax credits, he noted.
“I don’t think it’s fair or just for one third of the population to bear that burden,” resident David Palmer said Monday night.
The council estimated that removing the tax credit would have generated about $113,000 in additional annual revenue. They voted in August to consider making the change through amending the existing ordinance rather than putting it on the ballot.
But after repeated backlash from residents, many of whom wanted to be allowed to vote on the measure, no council members chose to move forward with abolishing the tax credit on Monday night.
The measure can be brought up again, Reneer said, but there are no immediate plans to do so.
At least a half-dozen people voiced their objection Monday night to removing the credit.
“It’s hard enough to make ends meet,” Rosa Trent said. She worried that forcing many residents to pay additional income taxes could cause some of them to move out of the village and live where they work.
“I don’t understand if you’re wanting people to live in St. Paris, I don’t know how you’re going to get them to,” she said.
Many residents were also angry that they weren’t allowed to vote on the measure. Reneer pointed out that council had the option to put the tax issue on the ballot but voted to amend the ordinance themselves.
“We’re the bosses,” resident Steve Price said, motioning to the crowd. Council members should listen to them when they say they don’t want to get rid of the credit, he said.
When introduced in August, the council said the change was necessary to generate money for street maintenance, the police force and other village expenses. The village of about 2,000 residents has an annual budget of $1.3 million.
Several council members have instead put together other cost saving proposals, including a recommendation by member Niven Jester, a former police officer and current Champaign County sheriff’s deputy, that the village look into contracting with the county for law enforcement.
That move, he said, could save $150,000 annually.
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