Politics & Government

Tax Hike Opponent Says Increase Will Hurt Residents

With property taxes high already and an income tax increase proposed, Shaker Heights taxpayers are facing a difficult financial future, Taxpayers Union argues

Mark Zetzer leads the only organized opposition to Shaker's proposed income tax increase.

His Shaker Heights Taxpayers Union, barely two months old, claims 28 members and a dozen members and the same number of "likes" on its Facebook page. But he believes the group will grow as residents absorb the implications of the proposed increase, which would make Shaker's rate one of the highest in the region.

"Everybody's hurting these days, or at least I am," Zetzer said. "Some people said they're moving out, that it's kind of a last-straw thing."
 
The city, seeking to offset state cuts in aid to local government and abolition of the estate tax, wants to raise the rate from . Taxpayers will vote on the measure in an Aug. 7 special election.

Find out what's happening in Shaker Heightswith free, real-time updates from Patch.

Finance Director Bob Baker said a household earning $50,000 would pay $21 more per month if voters approve the increase. The total annual bill, now about $875, would rise to $1,127.

Such numbers scare Zetzer, who lives near Scottsdale Boulevard in what he calls "the low-income area of the city." That part of town, he fears, is much smaller than the wealthier parts where an increase can be weathered.

Find out what's happening in Shaker Heightswith free, real-time updates from Patch.

"There are people in the nicer parts of Shaker that I've talked to who don't care about the taxes," he said. "They didn't even know about (the increase)."

According to data from the Regional Income Tax Agency, a 2.25 percent rate would put Shaker in a small group of communities levying 2.25 percent or higher. That group include Twinsburg and Macedonia. Beachwood, Cleveland Heights and Mentor all impose a 2 percent rate. 

In Cleveland Magazine's annual "Rating the Suburbs" issue, Shaker's property tax rate — which totals $3,630 per $100,000 of valuation — ranked the.

"Our property taxes are extremely high," Zetzer said. "We're already overtaxed that way."

Zetzer's group believes the city's government is too large and that some departments, such as health and housing, could be privatized to save money.

The Shaker Financial Task Force, appointed by the mayor, issued a report detailing many such possible savings, but stopped short of suggesting privatization. But it also noted that at least 50 jobs would have to be eliminated to help the city offset $6 million in average annual losses from the state cuts.

The city employs 300 workers today, compared to 358 in 2007. Officials and the private-sector-based task force contend there are no more employees to lay off without affecting residents' quality of life.

Zetzer said he isn't sure of that, but he is certain that many pockets and purses will hurt if the increase is approved.

"We're just kind of hanging on," he said. "Our income keeps going down, cost of living goes up and taxes are going up.

"It's not a sustainable situation."


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here

More from Shaker Heights