Columbus Mayor Michael Coleman has proposed raising the city’s income tax to 2.5% from 2% to cope with a growing budget shortfall.
The 0.5% increase would generate just under $100 million a year, officials said, which is about the size of the expected deficit in 2010. Coleman said that without the tax hike he would be forced to lay off police, firefighters, and other city employees. His administration is already planning layoffs and enacting other cuts and fee increases.
It would be Columbus’ first tax increase since 1982.
“We’ve done all we can do,” Coleman was quoted in local reports as saying Monday. “Now is the time to ask voters to support us in this.”
The increase would be placed on the ballot in a special election in August, assuming the City Council approves the legislation. Coleman said the issue must be decided by August so the city can finish the 2010 budget by Nov. 15 as required.
