Dayton income tax revenue highest in city’s history

11:39 a.m. Thursday, Feb. 8, 2018 Local
The Dayton City Commission received a budget update on Wednesday. The city’s income tax collections last year hit a new record. CORNELIUS FROLIK / STAFF

The city of Dayton’s income tax revenue reached a record high in 2017, fueled by the tax increase approved by voters the prior year.

Income tax collections shot up to $122.4 million last year, which is the highest amount the city has ever received, not adjusted for inflation, city officials said.

RELATED: Dayton faces long-term budget issues, despite income tax hike

Adjusted for inflation, the city’s income tax revenue was likely higher in the 1970s, said Diane Shannon, deputy director of Dayton’s office of management and budget.

Voters in 2016 approved a tax hike that increased the city’s earnings tax to 2.5 percent from 2.25 percent, and without that, Dayton’s income tax revenue would not have climbed back up to its pre-recession peak.

The high-water mark for collections was $113.8 million in 2006. Last year, the city collected $111.8 million, not counting the revenue from the additional 0.25 percent levy.

Collections fell off a cliff between 2007 and 2008 during the Great Recession.

RELATED: Dayton’s income tax hike passes

Shannon said the city still faces long-term structural budget challenges and “additional resources are needed in the area of infrastructure maintenance and replacement.”

The city’s overall general fund revenue increased by $12.2 million last year to $170.6 million, city data show.