Shaker Heights Collects Nearly $21M in 2012 Income Taxes

The year-end amount includes three months of money from the voter-approved income tax increase

Shaker Heights brought in just under $21.1 million from income taxes this year.

Finance Director Bob Baker said that's the amount the city anticipated following voter approval of the income tax increase in August.

"We had been advised by (the Regional Income Tax Agency) that we would see approximately $400,000 growth in income tax receipts as a result of the election," Baker said, "and that's what we received."

The city collected $20.64 million in 2011.

Taxpayers first saw the increase reflected in their October paychecks. Baker estimated that a household earning $50,000 would pay $21 more per month than they had prior to the increase. The total annual bill for the person in that example has grown from $875 to $1,127.

Baker expects the city to receive an extra $6 million by this time next year for 2013 receipts. The tax rate rose from 1.75 percent to 2.25 percent after voters approved the increase in the August election.

Mark Zetzer January 25, 2013 at 02:32 PM
It would be helpful to Shaker taxpayers if Bob Baker would publish City income tax revenue data going back as far as possible. Raising tax rates is generally not the best way to raise tax revenues over the long term, since higher income earners have the most incentive to flee the district. Any decline in tax revenues over the 31-year period when the 1.75% tax rate was stable would indicate that the rate was unsustainable and should have been lowered, not raised. Such a tax cut need not initiate from City Hall; it can be placed on a ballot by voter petition.
Rose January 25, 2013 at 04:15 PM
Yet, they still give a smaller credit for taxes paid to other cities than most cities in the area do. We are now paying approximately 3.75% to live in "Shake you down" Heights. Why not more than a half percent credit?
AM January 26, 2013 at 03:35 PM
Shaker has always given the lowest credit for taxes paid to other cities. With the 0.5% income tax increase that only 4,200 residents voted for, they have wiped out the credit also. The worst part is, the city did NOT need this increase and they were NOT expecting it to pass. If the 0.5% increase failed, which city leaders expected it would, they were going to counter with a 0.25% increase which would make them look "reasonable" to residents who were opposed to the 0.5%. But those 4,200 residents were more than happy to hand over other people's money (most of those yes voters were retirees who do not have to pay income tax) when the city sent out letters with scare tactics and threats . Now the city should have a surplus, most of the residents' local income tax, Shaker portion, will not be paid until March or April, so the city will have exceeded its expectations and will spend that money on projects that will NOT benefit the residents, such as rehabbing housing for employees of Launchhouse and pouring more money into renovations of a building where businesses operate, rent free. Shaker residents need to continually be reminded of the wasteful spending at City Hall and fiscal irresponsibility of our elected officials. It is possible to change, but residents need to pay attention and look at the facts, not the propaganda spewed from City Hall.


More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »