No decision has yet been made regarding whether to add a commuter credit to the proposed Marysville municipal income tax increase, council members said in a brief meeting March 25.

No decision has yet been made regarding whether to add a commuter credit to the proposed Marysville municipal income tax increase, council members said in a brief meeting March 25.

Council has been mulling over the idea since hosting two community meetings in January, during which the public had a chance to weigh in on whether they thought those who live in Marysville and work in other communities should be compensated for the taxes they already pay to the latter.

"At this time there has been no decision on commuter credits," council member Nevin Taylor said during the March 25 meeting. "We're still looking at the options, and an announcement will come from the mayor's office."

Council members voted in December to put an issue before voters on the May ballot that would raise the city's municipal income tax from 1.0- to 1.5-percent. Many residents have voiced interest in a 0.25 percent or even a 0.5 percent credit on the increase for those who live in Marysville but commute to another municipality, where they are also being taxed.

Council president John Gore has said that if voters are interested in the idea of commuter tax credits, there is time for the council to prepare accompanying legislation for the levy before it goes to the voters.

Currently, the income tax increase request is virtually identical to the request voters narrowly denied in November. If approved, city leaders project the increase to raise an additional $4.1-million in annual revenue.

Improvements to city services that could be accomplished with that revenue include a new fire station north of the railroad tracks to reduce response times, and the refurbishing of the city's existing fire station and police facilities, city leaders have said.

To the average Marysville resident, the increase would mean an additional $5 in taxes for every $1,000 of earned income. For example, a resident earning $50,000 would pay an additional $250 a year.

If approved, the rate increase would be effective July 1, 2010. Retired residents and those on fixed income would not be affected; all Social Security, company pensions, dividends and interest income would continue to be exempt from the city's income tax, city leaders have said.

lrice@thisweeknews.com