The proposals have sparked significant debate over the past month.
Marion City Council is set to discuss two ordinances concerning the local tax code during its upcoming meeting on Monday
Councilman Ayers Ratliff of the 2nd Ward is the proponent of both ordinances. The first one, Ordinance 2023-028, aims to amend a section of the tax code that currently requires all city residents aged 16 and above to file an annual municipal income tax return, regardless of their income or tax liability. Ratliff argues that this requirement places an unnecessary burden on residents who are not obligated to pay local income tax, resulting in wasted resources and time for the auditor’s office. Under the proposed amendment, only residents with an annual income of $500 or more would be required to file an income tax return. The amendment also removes the age requirement for filing a tax return.
The second ordinance, Ordinance 2023-029, seeks to amend another section of the tax code related to the credit for income tax paid to other municipalities by Marion residents working outside the city. Currently, Marion residents receive a 50% credit for income tax paid to other municipalities. Ratliff’s proposal suggests increasing this credit to 100%, arguing that Marion residents who already pay income tax to other municipalities should not be subjected to double taxation. Councilmen Mike Neff and Aaron Rollins have expressed support for this ordinance in previous meetings.
The auditor’s office has voiced opposition to both amendments
Deputy Auditor Marden Watts believes the changes would create contradictions within the tax code and could have adverse effects on other parts of the code, including the definitions of terminology. Watts also estimates that the proposed 100% credit increase would result in a loss of approximately $311,000 in income for Marion.
The Marion City Council meeting, where these ordinances will be discussed, is scheduled for Monday at City Hall. Councilman Brett Cornelius, At-large, is expected to tender his resignation during this meeting as he will be relocating for a senior pastor position. The Marion County Republican Party Central Committee will then begin the process of finding a replacement for Cornelius. This resignation follows the departure of Councilman Kai Meade last year, who was replaced by Jeff Gerritsen.
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