UPDATE: Lancaster voters approved this tax increase, 52.2% to 45%.
Lancaster City is considering levying a sizable income tax hike, claiming pandemic budget woes.
The city is looking at a budgetary shortfall, and some are looking to raise rates in order to fill the gap. Citizens will decide on a ballot measure on November 3rd that would raise the city income tax .45 percent up to 2.20 percent.
While tax hike proponents now have turned to blaming COVID-19 for forcing their hand, a similar tax hike measure was struck down by voters early in the spring. Apparently local politicians plan on continuing to place the issue on the ballot until they get their way.
Lancaster City has had a history of income tax hikes and mismanagement, so much so that Americans for Tax Reform President Grover Norquist has not shied away from calling out the city in the past.
Lancaster City Fire Chief David Ward Has been a major proponent of the tax hike, citing the city’s strapped budget, “The need for an income tax increase is more dire than ever. The shortfall the city is experiencing from income tax collections during the coronavirus pandemic has only exacerbated that need”… “Unless we’re told we can use some money from the CARES Act as federal revenue replacement to get us back to the expected 2020 income, the shortfall is going to be very pronounced. They’ve bailed out everyone except local governments, so we’ll see what happens.”
The city has already received sizable portions of federal CARES act funds however, and if more leeway is needed in spending the funds, that has been discussed in Washington. Raising taxes will only serve to hurt families and businesses in the city who are struggling during the pandemic.
Voters will have to serve as a backstop for city officials’ one-track mind, and reject this tax increase.