By Monty Siekerman
Here are basic facts about the Ada school income tax levy renewal that will be on the ballot on Tuesday, Nov. 7.
The current income tax levy of ¾% expires Dec. 31, 2017.
The income tax has been in effect since 1992. This is the fifth renewal.
This is a renewal, not a new tax.
If approved, the renewal will go into effect Jan. 1, 2018, and will continue for 5 years.
The current tax rate is an estimated 9.25% of Ada’s General Fund Revenue Budget.
The purpose of the tax is to provide revenue for general operating expenses, which include personal services (wages), retirement and insurance benefits, supplies and materials, purchased services and capital outlay.
The income tax is a separate tax from federal, state, and city income taxes and is earmarked specifically to support school district operations. Residents pay the tax through employer withholding, individual quarterly estimates, and/or annual returns.
School district income tax is based solely upon the residence of the individual, not the place of employment.
The Ada Board of Education decided not to have a special election in May to save taxpayer money (estimated savings $8,416). There were no primary contests or issues on the Ada ballot in May, so if the board decided to place the levy on the ballot in May, the school would have had to pay the entire cost of having an election, estimated at $8,416.
The board chose to wait until fall, thus saving taxpayer money.
