The City of Avon Lake is proposing a 0.4% municipal income tax increase on the May 5, 2026, ballot. If passed, the income tax rate would be adjusted from 1.5% to 1.9% for a five-year period. The approximate $6.6 million in revenue generated by this 0.4% increase will fund road and capital improvement needs in our growing community. For a household earning $100,000 in taxable wages, the proposed increase would equal approximately $400 per year or $33 per month. This income tax would apply to earned wages and does not apply to Social Security, pensions, or annuities.

If the 0.4% income tax increase is passed, the City will stop collecting its existing 1.5-mill operating property tax, resulting in an overall tax decrease for retired residents. Because the income tax issue would apply only to earned income, it will not increase the tax burden for residents on fixed incomes. 

In addition, this does not take funding from our schools or library. 

The current income tax credit of up to 1.5% will remain in place for residents who work and pay taxes in other communities. If the proposed income tax increase is approved, the additional 0.4% tax would apply to earned income for all residents, regardless of where they work.

We have maintained our quality of life on 1992 tax rates for 33 years. The City has taken action to bridge the funding gap by reducing operating budgets, limiting overtime pay, initiating steps to reduce healthcare costs, and pursuing grants and other revenue sources. However, these efforts alone cannot keep pace with the rising costs of capital improvements. To fix our roads, manage stormwater, and maintain our services effectively, we need to align our revenue with today’s costs.

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