What is an Earned Income Tax levy?


Editor’s note: In the May 4 election, registered voters who reside in the Sidney City Schools District will be asked to approve a 0.75% Earned Income Tax levy. In the weeks leading up to the election, the Sidney Daily News will be publishing a question each week — provided by the school district — about the tax levy.

What is Sidney City Schools placing on the May, 2021 ballot? What is taxed with an Earned Income Tax? Who will pay? How much will it generate for the district?

On Tuesday, May 4, 2021, Sidney City Schools will be asking voters to approve a 0.75% Earned Income Tax levy to generate $3.3 million a year to support the district’s operations.

An Earned Income Tax will only tax W-2 compensation or self-employment income that is subject to the self-employment tax.

Income that is not taxed includes retirement income, Social Security income, IRA distributions, pensions, unemployment compensation, workers compensation, interest and dividends, capital gains, royalties, profit from rental activities, lottery winnings, distributive shares of profit from corporations, alimony received and distributions from trusts and estates.

Only residents within the district limits of Sidney City Schools will pay this tax.

The 10-year, 0.75% Earned Income Tax will generate an estimated $3.3 million a year.

More information about the Sidney City Schools levy can be found at www.sidneyschoolslevy.org.

This is part of a series of weekly questions and answers. Please check back each week for more.

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