The tax consultant for the village of Marble Cliff has encouraged the village to consider mandating the filing of income tax returns.

The tax consultant for the village of Marble Cliff has encouraged the village to consider mandating the filing of income tax returns.

Mandatory filing is one of several possible options the village council might consider as it ponders how to address the projection that without further action, the village will have a deficit of $308,258 by the end of 2015.

The projection was included in the five-year financial forecast village fiscal officer Cindy McKay presented council last month.

Council asked for more information about several options, including mandatory filing, seeking the collection of a portion of the remaining inside millage in the village and establishing enterprise funds for sewer and water services.

None of these options are under formal consideration. The village is at an information gathering stage.

At council's June 21 meeting, McKay presented council with information about the mandatory filing and inside millage options.

McKay said she and Mayor Kent Studebaker met with tax consultant Bob Curtin to discuss various income tax issues.

Curtin recommended the village consider mandatory income tax filing, McKay said. Marble Cliff is only one of five communities in central Ohio that do not require filing.

It is uncertain how much additional revenue mandatory filing would bring in, she said.

Curtin indicated the village could do some type of survey to create an estimate, "but as small as this community is, we might as well just (enact mandatory filing)," McKay said.

Mandatory filing would create additional expenses for the village because its tax administrator, the city of Columbus, would have to establish additional accounts to administer, she said.

McKay also presented council with information from the county regarding the tax impact if the village's inside millage were increased.

To obtain the inside millage, council would have to approve a resolution requesting the Franklin County Budget Commission to grant the additional inside millage. The additional inside millage is not subject to voter approval.

The village currently collects .35 of the approximate 1.8 mills of available inside millage.

If it decides to seek additional inside millage, the village would probably only request the county to approve an additional .65 mills, "leaving some on the table," Studebaker said.

According to the county, at the village's current rate of .35 and after all applicable rollbacks, a home with a market value of $500,000 pays $53.60 a year in taxes from inside millage, McKay said.

If the collected inside millage in Marble Cliff was increased by .65 to a total of 1.0 mill, the owner of a $500,000 home would pay $153.15 per year, she said.

The figures for the owner of a $100,000 home are $10.72 per year under the current inside millage and $30.63 per year if the millage was increased.

At the village's current inside millage rate, Marble Cliff receives about $15,000 in property tax revenue, McKay said. That total would increase to about $44,000 if the rate was increased to 1.0.

"It does not create a lot of money for us because we're small," she said.

"I like the idea of looking at that 1.0 mill in inside millage, probably sooner rather than later," council member Matt Cincione said. "One mill is not much, but over the life of some sort of capital project, that's a lot of money for not a whole lot of pain."

Additional inside millage revenue would go into the village's general fund.