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Tax tempest continues in Jackson

Local business owners call new flat tax unfair

JACKSON TWP — “I came out tonight to unload a little bit.”

Spaca Center Self Storage owner Dennis Spirk unloaded more than that Thursday as business owners criticized the business flat tax for 85 minutes of a 90-minute township supervisors meeting.

The tax, which charges $800 to all Jackson Township businesses reporting more than $150,000 annual gross revenue, first came due July 15. Local business owners say the tax, which the board says is to maintain roads damaged as part of business traffic, is unfair.

“If you’re going to raise taxes, do it fairly,” said Kevin Lenz, who operates the D.I.A.N.A. Driving School.

The board continued to defend the tax, noting that state law prohibits municipalities taxing percentages of business revenue. The exemption of businesses making less than $150,000 annually is a high exemption, said township manager Chris Rearick.

“There’s not a way to segregate the big and little (businesses) because of state and federal regulations,” added Supervisor Jay Grinnell.

The owners, who represented six local businesses, all said it was unfair to target a small group of the population.

“I understand the infrastructure problem,” said Sue Meredith, who co-owns Meredith Batteries with her husband, Doug. “But I’m asking for some fairness.”

Supervisors argued that raising property taxes would have little effect on the revenue, as they receive just 5 percent of those tax dollars, and said the township has not raised property tax rates in 17 years.

Of the approximately 300 businesses with addresses or phone numbers in Jackson Township, the board expects 50 to 60 to pay the $800 tax, as the remainder earns less than the exemption or use their home address as an outside business address. The latter group, said Rearick, would simply have to write a letter to the township asking for an exemption.

The tax is expected to help fund a projected $200,000 capital reserve fund, which would serve to pay for projects like road improvements, traffic lights and other infrastructure.

Doug Meredith pushed back against the tax, saying it was unfair to only earn revenue from people who operate a business out of the township.

“I never would have voted for or passed a tax that was this unfair and this discriminatory,” he said.

Sue Meredith echoed the complaints of others, arguing businesses that complete projects in, rather than only those which operate from the township should have to pay as well, but the board again said that would be an illegal tax.

“That’s a cop-out, to me,” said Lenz.

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