MT. VERNON — The city council will be discussing a one-half percent increase to its Municipal and Service Occupation Tax — commonly referred to as Home Rule sales tax — during its meeting tonight.
The council announced its intention to raise the tax during a workshop session last week, stating the increase would be used to pay the debt on capital projects and to undertake additional projects, according to Mayor Mary Jane Chesley.
Capital projects are currently financed through the food and beverage tax, the 2 cent per gallon diesel tax and the telecommunications tax.
"Unfortunately the revenues from those three sources are not enough to cover what we need to be doing," Chesley said last week. "The city is proposing a half-cent increase to sales tax to provide the revenue that we'd be needing to carry on these projects that we so desperately need to complete, particularly in economic development and quality of life."
If approved, the city's tax rate would go from 7.5 percent to 8 percent. Council members have said the rate proposed is less than area cities of comparable size, with Marion, Carbondale and Fairview Height boasting tax rates higher than 8 percent.
The council will also be looking at moving forward on several capital projects tonight, asking for authorization to seek bids for the Veterans Memorial Drive and South Davidson Avenue roadway extension project, the Veterans Memorial Drive and South Davidson water main extension; the Veterans Memorial Drive and South Davidson Avenue sanitary sewer extension and lift station; and the Shiloh Road lift station.
