AG board looks to raise earned income tax
Foregoing the recommendation made by the Albert Gallatin Area School District Local Tax Study Commission, school board members voted Wednesday to potentially raise the earned income tax to 0.9 percent. Voters will decide in May whether or not the earned income tax will be raised by voting yes or no to a referendum question that will ask: “Do you favor imposing an additional 0.4 percent earned income tax?”
The revenue generated from the increased tax rate will be used to reduce taxes on qualified residential and farmstead properties by an estimated amount of $167, according to the referendum question approved by the school board.
In November, the commission recommended a 0.1 increase in the earned income tax that would have bumped the tax up to 0.6 percent.
Under the 0.6 earned income tax, a household with a $35,000 annual income would pay $210 a year in earned income tax, which would have been a $35 increase over the current rate of 0.5 percent. A household generating $75,000 in annual income would have paid $450 annually in earned income taxes, $75 more than the current rate.
At 0.9 percent, households with an annual income of $35,000 will pay $315 annually in earned income taxes, $140 more than the current rate of 0.5 percent. Households generating $75,000 in annual income will pay $675 in earned income taxes, $300 more than the current rate of 0.5 percent.
School district Superintendent Walter Vicinelly said the school board had to reject the recommendation made by the tax study commission because the commission figured gaming revenue money into the equation.
Vicinelly said the district has not received any gaming revenue money and doesn’t know when, if ever, that money will be given to the district.
The board was forced to ask for a 0.4 increase in the earned income tax, as opposed to a 0.1 increase, in order to meet minimum income requirements, Vicinelly said.
Legislation known as Special Session House Bill 39 required districts to form tax study commissions to advise school boards in regards to taxes. Commission members were to make a recommendation as to whether the school board should either raise the earned income tax, which would tax workers’ earnings, or create a personal income tax, which would tax everybody in the district.
The school board was within its rights to either accept or reject the tax commission’s recommendation.
The public will vote on the referendum, which will be on the May 2007 primary election ballot.
The school board also conducted the following business:
– Appointed Edward Andria to the Intermediate Unit I Board of Directors. Andria held the position in 2006.
– Hired Charles Shimshock and Todd Dunham as assistant varsity baseball coaches, hired Dennis Santella as ninth grade baseball coach, appointed Chad Filmeck and Gerald Valenti Jr. assistant baseball coaches, hired D’Anne Hoferka and Colony Hopkins as assistant varsity softball coaches, hired Dexter Smart and Tom Corazzi as assistant track and field coaches and hired Jeff Rush and Zachary Dillow as spring/summer conditioning coaches. All of the coaches were hired to work at A.G. High School.
– Hired Joe Embacher as spring/summer athletic director at A.G. North Middle School and Larry Flowers as spring/summer athletic director as A.G. South Middle School.
– Hired Renee Rosie as head girls’ softball coach at A.G. North and hired Bethany Sanner as assistant coach.
– Hired Larry Flowers as head girls softball coach at A.G. South and hired Mary Hickle as assistant coach.
– Accepted the retirement of Andrew Kormanik effective March 9 and accepted the retirement of Marlane Matzus effective at the end of the 2006-2007 school year.
– Granted permission to create and post two job openings, one for a learning support instructor at Smithfield and A.L. Wilson elementary schools and one for a four-hour cafeteria employee.
– Announced a special meeting will be held at 6:30 p.m. Friday in the A.L. Wilson Elementary School cafeteria to open bids in regards to A.L. Wilson Elementary construction project.