The city of Delaware relies heavily on revenue from its income taxes.
“Delaware could not function with a 100-percent credit,” said city spokesman Lee Yoakum in email. “Nearly half of our residents — 46 percent — work in another city that taxes their income, but we rely on everyone’s tax revenue to pay for city services like police, fire, EMS, pot hole repair and snow removal.”
“The City of Columbus does not share (reciprocate) taxes with the city of residence of workers who work in Columbus and live elsewhere,” he added.
Delaware residents will vote Nov. 8 to raise the income tax to 2 percent from 1.85 percent. While the 0.15-percent increase would be used for the city to address issues with roads and traffic congestion, there are no adjustments to the city’s tax credit for those who work outside of Delaware.
The city allows a partial credit for taxes paid to another city, which is the lesser of 50 percent of the tax paid to the other city, or half of Delaware’s rate of the income taxed by both cities.
If the levy passes, the increase will be small compared with those who work inside the city. For example, a Delaware resident who works in Columbus with an annual salary of 100,000 would pay $75 more in income taxes if the levy was approved, while a resident who lives and works in Delaware would pay $150 more on the same salary.