City News & Information Primary Election Day is Tuesday, May 4, 2021 What’s on the Ballot? Currently, residents who pay taxes to another municipality receive a 0.25 percent credit, meaning they pay 0.5 percent to the city of Powell plus an additional tax to
Powell City Council unanimously approved a resolution that will place an income tax restructuring proposal before voters during the Primary Election on Tuesday, May 4, 2021. This measure will be the single issue on the ballot. If approved, the tax restructuring would go into effect Jan. 1, 2022. The proposal would reallocate the current tax distribution for residents who live in the city and work in a different municipality. Specifically, it would raise the credit for taxes paid to another municipality to 100 percent and increase the effective income tax rate for individuals working in the city from the current rate of 0.75 percent to 2 percent.
the city where they work. Social security and pension income are not taxed as earned income and therefore would not be impacted by the proposed change. The proposal is estimated to generate an additional $3.4 million for the City of Powell each year, which would be spent on improvements to public safety, economic development, operational efficiencies and infrastructure.