Friday, November 10, 2000

Kenton rescinds jail tax

Some workers to pay more anyway

The Cincinnati Enquirer

        COVINGTON — If Kenton County gets a new jail, it won't be paid for with the payroll tax.

        Kenton County Fiscal Court approved a resolution on second reading Wednesday night to repeal a plan, never enforced, that increased the county payroll tax.

        The increase had been intended to help pay for a new jail.

        County commissioners agreed Wednesday to drop the increase, but raised the cap on income from which the tax will be collected.

$75,000 threshold
        Anyone who works in Kenton County used to have to pay tax on the first $25,000 of income.

        With the increase, people will have to pay tax on their first $75,000.

        A person earning $50,000 a year would pay $425 a year in taxes, where they previously would have paid $212.50 because they would have been taxed only on the first $25,000 of their pay.

        The payroll tax had been raised from 0.85 percent to 1 percent, which county officials estimated would raise an additional $10 million a year.

        But that increase was what county commissioners voted to reject Wednesday.

$5 million more a year
        The higher cap will raise about $5 million additional annually, even at the 0.85 percent rate.

        The additional money will go to county road projects, enabling the county to use money from the general fund for the jail project.

        The county has grappled with the issue of a new jail for almost two years and still hasn't selected a site.


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