Cincinnati voters won't have to decide this year on an income tax increase, Mayor Aftab Pureval told The Enquirer, after he opted not to bring his proposal forward this year.
It won't be the last voters hear of a city income tax hike. Pureval said he still hopes to put an income tax increase before the voters sometime before his term is up in 2030. He said he wants an income tax increase to pay for affordable housing, neighborhoods and public safety.
"There's no timeline," Pureval said. "We're going to continue to work with our partners and our coalition to identify the best time to move forward."
Why the mayor decided to wait
The rising cost of living along with two major tax levies on the ballot—Cincinnati Public Schools and Hamilton County children's services—convinced Pureval
now isn't the time for an income tax hike. He said the city administration and council have improved the city's financial outlook since January when he first proposed the income tax hike in his inaugural address.
The schools and children's services have a more urgent need, he said.
"Our finances are stable," Pureval said. "Those organizations seem to be in a fiscal crisis, and the community should be focused on them right now."
Pureval applauded school board's decision
The Cincinnati Public School Board's decision to put a proposed income tax increase on the November ballot sparked opposition from both Republicans and Democrats in the city.The backlash prompted the board to rescind the income tax hike in favor of a property tax.
Pureval supported the Cincinnati Public School Board of Education switching to a property tax levy.
The income tax is the city's biggest source of revenue, about two-thirds of the $593 million general fund budget. The school board's proposed 0.75% income tax increase would have taken Cincinnati from one of the lowest income tax rates to one of the highest in the state.
"That of course was concerning to me given the fact that we need those earnings tax dollars for public safety, for basic services," Pureval said.
What is the city's income tax?
Currently, people who work in Cincinnati are taxed 1.8% of their earnings. That's lower than the 2.5% income tax rate of Columbus and Cleveland.
City leaders have proposed increasing the city's earnings tax for a few years. The Cincinnati Futures Commission, a high-profile commission tasked with charting the city's future, proposed increasing the city's income tax to 1.95% to pay for economic growth and public safety in a 2024 report, Pureval had supported the increase but it never made the ballot.
This article originally appeared on Cincinnati Enquirer: Cincinnati mayor drops income tax hike plan for now. Here's his plan
