The City says it would need only one or two new employees, at a cost of under $125,000 per year, to administer a new City Income Tax Department. This estimate is wildly optimistic.
If the income tax passes, the city would need to process over 25,000 new income tax returns annually. City Hall would have to buy and update software, build databases, and hire numerous consultants. It would take a massive and expensive upgrade of the aging accounting systems, extensive data migration, new equipment, and training of new and existing staff before the City can collect any income tax.
Experts say that these preparations would cost over $1 million dollars in the first year. Over five years, the City would have to spend well over $2 million to create a massive new bureaucracy for collecting and enforcing the City Income Tax.
Meanwhile, we can expect diminishing returns as income tax payers flee the city.