Council learns of long tax credit error

SCOTT TRUXELL/independent editor

A mistake that goes back eight years could be beneficial to hundreds of Van Wert city residents but will be costly to the city itself.

Monday night, Mayor Ken Markward told members of city council that a transfer of funds will be needed for city residents who were overcharged on their city income taxes, if they worked outside of Van Wert and had to pay city income taxes elsewhere.

In September of 2017, council doubled the tax credit from 25 to 50 percent for city residents who paid elsewhere. It was done with the thought it would be rescinded if an income tax increase that was on the ballot failed. It did indeed fail, but the council at the time never formally passed legislation to drop the credit back down to 25 percent, meaning several hundred people who live in the city but work elsewhere overpaid.

“If you are looking for a silver lining there isn’t much except it’s good that we found out now and not five or seven or 10 years from now,” Markward told council members. “It’s good that we have a cash balance that’s able to cover this so we don’t have lay somebody off.”

Markward said while he doesn’t have a final number yet, he did say it would be substantial. More information is expected at the next meeting of city council, and council is expected to vote on legislation that would reduce the credit to 25 percent. 

Much of Monday night’s meeting centered around finances and the city’s next budget.

After hearing the latest on the city’s proposed 2026 budget from City Auditor Erika Blackmore, council members heard the first reading of budget legislation. It will have two more readings and will likely be approved before the end of the year.

Three salary ordinances for various city employees were approved by council, along with a resolution allowing Fleming to apply for Ohio Department of Transportation Transportation Alternative Program (TAP) funding.

In other business, council heard the second reading of an ordinance to annex property at the southeast corner of Woodland Ave. and John Brown Rd., and the second reading of an ordinance for fire protection agreements with Pleasant and Hoaglin townships.

Council members also heard a brief presentation from Van Wert Area Economic Development Corporation Executive Director Brent Stevens, who requested $80,000 in funding for 2026, the same amount as the previous 10 years. The amount is already included in the proposed budget. The VWAEDC also gets funding from the county and other sources.

The next meeting of Van Wert City Council will be held at 6:30 p.m. Monday, December 8, in Council Chambers on the second floor of the Municipal Building, 515 E. Main St. Prior to the meeting, at 6:15 p.m. there will be public hearing regarding two zoning changes.