Council may put tax question to voters

The Tipp City Council voted 6-1 on Monday to pursue voter approval of a reallocation of 0.2% of the city income tax from capital improvements to the general fund to help offset growing operating costs.

The set aside of the income tax was approved by voters in 1981, so council was told the city would need voter approval to redirect the proceeds for another use. The next step will be council voting to ask the Miami County Board of Elections to place the reallocation question on the November ballot in the city.

Council President Kathryn Huffman cast the lone “no” vote, saying the 0.2% should be left where it is for capital projects.

Other council members said there is sufficient funding in the capital fund from voter approval of another income tax for that purpose. If more is needed in the future, council could move the money back to the capital fund, they said. The reallocation of the 0.2% in income tax would not affect what residents are paying in city income tax, said Mayor Mike McFarland.