NILES, Ohio (WYTV) – The brand new 50,000 square foot Cafaro headquarters could bring a good sum of money to the City of Niles through the company’s income tax payments.
Niles needs to make up a $130,000 deficit to comply with the state’s recovery plan.
To the city’s advantage, changes in Ohio law now require companies to pay income tax monthly instead of quarterly.
“We’re anticipating their annual income to be around $10.5 million,” said Tax Director Lisa Smathers. “That’ll generate around $210,000 for the City of Niles.”
That money for the city includes the half percent income tax increase starting July 1 that will make the Niles income tax 2 percent. All of the funds generated from the increase will go toward the police and fire departments, which took a big hit at the beginning of the year.
“So right now at one and a half percent, they get a half percent but now with this bump up, they’ll get a full percent of all tax collected,” she said.
Mayor Tom Scarnechia says the revenue from the Cafaro move is not new money and it’s already in the budget.
He said it did help when looking for revenue for the police and fire departments, though. Scarnecchia’s main priority now is bringing back those laid-off from the police and fire departments.
Smathers and Cafaro Company spokesperson Joe Bell both agreed that moving the company to Niles was a win-win for the city and company.
“Youngstown’s tax rate is 2.75 percent. Ours will now be 2 percent,” Smathers said.
“Even whenever it moves up to the 2 percent rate, it’s like getting a three quarter percent raise,” Bell said.
He says the Cafaro Company might hire more employees also, bringing in even more revenue for the city.