Shelby residents working outside city limits are now receiving a reduced tax credit allowed for income tax paid to other municipalities. The reduced tax credit comes via legislation passed by City Council this past December. One Shelby resident is unhappy with that result and is petitioning against it.
For the past two weeks, Shelby resident Chris Colyer has been circulating a petition opposing the passage of Ordinance 22-2014, which was approved by Shelby council at their Dec. 15 meeting. Shelby residents who work outside the city will now receive a 67 percent tax credit on the base 1 percent income tax that was first established in 1972. The 67 percent tax credit is a reduction of the previous 100 percent credit, and will be in place for the year 2015 and forward.
“I think everybody hates paying taxes,” said Colyer, who lives in Shelby but works outside the city. “Personally I don’t mind paying my fair share but it seems like they’re penalizing those who work out of town. If they’re going to tax some, then tax everybody.”
Shelby residents who live and work inside the city of Shelby as well as non-residents employed in Shelby pay the city’s full income tax rate of 1.5 percent.
Colyer said he believes city council “backdoored” the residents of Shelby by passing the three readings of Ordinance 22-2014 over the holidays.
“Between November 22 and December 25 there are a lot of things happening with the holidays,” said Colyer. “People are out of town, they’re out shopping, and not a lot of people’s heads are in the game of going to city council.”
Ordinance 22-2014 passed its first reading 4-1 on Nov. 17 with only Councilmember Garland Gates voting no, and its second reading passed 3-2 on Dec. 1 with Councilmembers Harold Shasky and Nathan Martin voting no.
At a Dec. 15 meeting, Councilmembers Nathan Martin, Garland Gates, Pat Carlisle and then-Councilmember Steve Schag voted yes to pass the ordinance. Councilmember Harold Shasky was not present at the Dec. 15 meeting.
More than 100 people have signed Colyer’s petition as of Jan. 27, with many Shelby residents visiting Colyer at Marvin Memorial Library on Tuesday to sign the petition. One unhappy resident compared living in Shelby to “living in Sherwood Forest,” the woods with the story of Robin Hood.
“This is like kicking you when you’re down,” said Shelby resident Justin Schatzinger, owner of The Little Brew. “It sets a tax precedent I don’t like. This is something the everyday citizen needs to be made aware of.”
Bringing the situation to light is one of Colyer’s main goals in circulating the petition. He said he plans on bringing the petition to the next Shelby City Council meeting on Feb. 2, and hopes that council will either stand behind their decision or give the decision to the voters.
“Ultimately an issue like this needs to be decided on by the voters, not just five people who sit on city council,” said Colyer. “Ninety percent of council members are either retired, they have a business located in town, or they live and work in the city of Shelby, so none of the things they’re voting on actually affects them. So how can they diligently vote on something that doesn’t affect them? It affects their constituents.”
According to Finance Director Bob Lafferty, the tax credit will be restored back to 100 percent if any of the following options occur: local government funds are restored to their original level of $317,000 annually, the electorate passes a General Fund tax levy for a term of a least five years, or the General Fund reaches a $500,000 fund balance at the end of any given year.
At council’s Jan. 20 meeting, the General Fund had a cash balance of $152,197 with encumbrances of $128,220, leaving only $23,977 available.
“I’m hoping by collecting enough signatures to let people know what’s going on, people will show up (to council) and not just talk about it,” said Colyer. “The people who sit on city council need to be aware of what the residents think and how they feel, and let them know this. I feel an educated resident or voter is a well-informed person.”
For more information regarding the petition against reducing the tax credit, please call Chris Colyer at 419-565-1218.
