In 2018, New Albany brought in about $3.2 million more in income-tax revenue than it did last year.
The increase continues an upward trend for annual general-fund income-tax revenue.
New Albany collected $20.3 million in income-tax revenue for the general fund in 2018, said finance director Bethany Staats.
Last year, income-tax revenue totaled $17.1 million. Revenues for 2016, 2015 and 2014 were $15.7 million, $15.6 million and $12.6 million, respectively.
The city's income-tax rate is 2 percent, said city spokesman Scott McAfee. Income-tax revenue accounts for 80 percent of the city's budget, he said. Though new business development has come to the city, much of the increase in income-tax revenue can be attributed to current businesses, such as Aetna, adding to their campuses, Staats said.
The overall health of the economy also has contributed to the revenue increase, she said.
In addition, projects under construction, such as Facebook's data center and American Electric Power's second building for its transmission headquarters campus, also generate income-tax revenue because construction workers at those sites pay income taxes to the city, McAfee said.
The impact of new businesses, such as Wallick Communities and Red Roof Inn, might not be fully evident until next year, when the businesses have a full year of income taxes paid to the city, McAfee said.
The New Albany International Business Park was responsible for a majority of the income-tax revenue increase from 2017 to 2018, Staats said. A significant portion of the revenue each year comes from businesses in the park, she said.
The business park has 15,000 workers, includes more than 11 million square feet of commercial space and represents $4 billion in private investment, McAfee said.
Most of the city's income-tax revenue comes from income-tax witholdings for people who work in New Albany, McAfee said.
"That's why job creation is so important here," he said.
Income-tax revenue also comes from residents who are self-employed or who work in another city with a lower income-tax rate than New Albany's, McAfee said. In the latter case, individuals pay New Albany the difference between what they already paid the city in which they work, he said.
Companies in New Albany also pay a municipal net-profit tax to the city, McAfee said.
A municipal-net-profit tax is the tax rate applied to a business' income after expenses are factored out, according to Gary Gudmundson, communications director for the Ohio Department of Taxation.
Income-tax revenue supports police protection, including community police programs such as Safety Town, women's self-defense classes and the school resource officers for the New Albany-Plain Local School District, McAfee said.
The revenue also funds other city services, such as snow plowing, road maintenance and trail maintenance and expansion, he said.