Voters must still ultimately choose whether or not to actually have an income tax at the ballot.
The proposal includes a 1% continuous income tax with a 100% credit for residents who are charged a municipal income tax where they work. In Ohio, taxpayers are charged local income tax in both their city of residence and their city of employment, though most municipalities offer at least some credit for taxes paid to city of employment.
Retirement income, social security, military dividends, interest, capital gains, and unemployment income, among others, would all not be subject to the tax.
The effective date for the income tax would be July 1, 2027, and the last property tax collection would occur in August 2027, according to city documents.
Beavercreek voters have rejected an income tax multiple times over the last decade. The city relies substantially on property tax income and grants to fund city services, with about 72% of all funding coming from those sources, city documents show. Subsequently, proposals to eliminate property taxes across the state have left city officials significantly concerned.
Officials have also previously expressed concerns that, if property taxes are eliminated, the city would have to take on fire and EMS services, which are currently facilitated by Beavercreek Twp., which is funded entirely on property taxes.
Beavercreek residents who spoke at the city council meeting Monday offered a broad range of opinions on the topic.
Beavercreek resident Ed Maloof, a former city council candidate and district captain for the Abolish Ohio Property Tax initiative, told council Monday he believes this measure is premature.
“Some things never change,” Maloof said. “I don’t think you guys have done your homework.”
Others expressed they were on the fence.
Resident Julie Moore said she is “totally in favor” of an income tax, as it ensures that city employees will continue to be paid for their work.
“I’ve worked my whole life, paid income tax, didn’t have a problem with it,” she said. “We have a lot of services; just because I may not have a police officer coming to my house today, I never know when I need one.”
Legislation to actually place the measure on the ballot is scheduled for a council meeting in April.
Councilmembers Sarah Bills and Pete Bales met with a large number of residents last week for a conversation about the tax code, resulting in changes to the language emphasizing the levies would be permanently eliminated.
“I think Beavercreek is at this crossroads where we need to be proactive,” Bales said. “Every Beavercreek resident works hard for the money they earn, and any discussion we have about taxes…needs to be done very thoughtfully and with a lot of respect…I believe that we must be flexible in how our funds are used, because we cannot predict every future challenge.’“
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