At Monday night’s Vermilion City Council meeting, members narrowly passed Ordinance 2025-12, which reestablishes a full 1% income tax credit for residents who pay municipal income tax to another city. The final vote was 4-3, with Council members Lucas, Drew Werley, Howell, and Drew voting in favor. Council members Holmes, West, and Council President Herron opposed the measure. No members were absent.
The ordinance amends Section 882.07 of the Vermilion Codified Ordinances, reversing previous reductions made during financially strained years. Debate during the meeting centered on balancing taxpayer relief with the city’s ongoing infrastructure needs, particularly deteriorating roadways in neighborhoods like Idleview and Berkview.
Councilman Holmes expressed concern that the vote was being rushed and advocated for tabling the measure for further discussion. “We have conditions all over the city roadways,” he said, suggesting that more deliberation could help align the ordinance with funding needs for road repairs.
Council President Herron acknowledged the city is in a stronger financial position than during prior reductions in 2013 and 2016 but cautioned that any restored credit must be weighed against the city’s infrastructure obligations.
Councilman Drew Werley, a vocal supporter of the ordinance, criticized the prior council’s decision to eliminate the tax credit, saying, “I’ve said it a ton of times up here that I believe that taxation’s theft.” He added that any new funding for roads should be decided by voters through a dedicated levy rather than through council action.
The ordinance will go into effect in 30 days.
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