08.16.21 MEETING MINUTES - Laserfiche WebLink

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Minutes of the Regular Meeting of Council Monday, August 16, 2021 Page 6 On the income tax side which is where the largest part of our revenue comes from, our income tax collections have been real strong. Through the end of July, this year we are down about $38,000 from the end of last year, but that is primarily a result of a $95,000 net profit tax refund that was issued to a corporation that actually went back to their tax return for 2018. So, if you take that out of the equation, this year we are actually ahead of where we were last year. The money received for August is very strong and what I see so far for September is also very strong. By the end of September, I still think our income tax collections for this year are going to be on par or actually a little bit ahead of where we were last year. When the State passed the Budget Bill, there were two parts of that Bill that have an impact on things going forward. One is it allowed taxpayers to file for refunds primarily if their resident community where they were working is lower than where they were working prior to the pandemic. That's only for 2021. We do expect to see an impact to our income tax revenues starting to factor in next year when taxpayers file their 2021 tax returns. The other part of that Bill had to do with employers and how they withhold income tax. When Governor DeWine declared the State of Emergency, he passed a Bill that said employers were to continue withholding based upon where the individuals were employed prior to the pandemic during the State of Emergency plus 30 days. So, once we went through the State of Emergency, they addressed in the Budget Bill that the State said that employers can continue to withhold based upon where the employees worked prior to the pandemic but it's not a requirement. It's voluntary. So, what we see for the most part is most employers are continuing to withhold based upon where everybody worked prior to the pandemic and I think most employers have brought folks back. Up until a month or so ago, it was our understanding that Progressive was going to start bringing their folks back to into the campuses in the first week of August. When the Delta Variant spiked, they took a look at it and they decided to push their return -to -work date to 2022. As far as employee withholdings goes, it is our understanding that they are not going to continue to withhold based upon where the individuals worked prior to the pandemic but they are going to give their employees the option of selecting where they want to have taxes taken out of their check based upon where they are currently working where their residence is or where they worked prior to the pandemic which would have been Mayfield Village, Highland Heights or Mayfield Heights. So, we will see an impact to that this year. What that impact might be, I have absolutely no idea. It's something we will track as much as we can when the settlements come in from the Regional Income Tax Agency. My hope is that the impact we see this year will be people are going to be applying for refunds next year anyway so the refunds they will get next year will just be for January through August and they will have a lot lesser amount taken out for the balance of this year. We will just track it as best as we can and keep you advised as we become aware of it. The Village I think is in a good position. We get approximately $40,000,000 yearly. I cannot see that going down by the end of the year so we will be positioned going into next year. Hopefully everything gets back to normal again. I will take any questions anybody's got. I just wanted to give a brief update as to where things are at. Council President Schutt stated, thank you, Mr. Wynne. Are there any comments or questions?