City introduces income tax ordinance

By Scott Halasz -

BEAVERCREEK — The City of Beavercreek took the first step in placing a 1 percent income tax on the November ballot.

During Tuesday’s regular meeting, council introduced an ordinance creating an income tax chapter to the city’s codified ordinances. Subsequent readings will take place June 8 and June 22 and if approved, a resolution could be passed July 27 to place the issue on the ballot.

Passage of the ordinance does not guarantee the city will place the issue on the ballot, but if it does and the income tax is approved by voters, it will begin Jan. 1, 2022. The city has tried three previous times to enact a property tax, the last coming in 2013. Beavercreek is one of six municipalities in the Dayton area not to have an income tax.

During his presentation to council, Bill Kucera, financial administrative services director, said the city has been considering its long-term financial strategy since 2018 and has been successful in stabilizing current levies. The city has also been working with the Beavercreek Fair Funding Committee, which wants to reduce property taxes and distribute funding of services between residents and non-residents.

The city will provide a credit up to 1 percent for residents who pay income taxes elsewhere and there are myriad exemptions including military pay, Social Security benefits, unemployment, child support/alimony, and intangible income such as income yield, interest, capital gains, dividends or income arising from ownership, sale, exchange or other disposition of intangible property.

If a tax is approved, the 3.4 mill property tax levy for streets that expires Dec. 31, 2021 would not be renewed providing property tax relief, according to Kucera. He added that passage of the tax could reduce the number of levies the city seeks in the future and could help fund a backlog of infrastructure and capital improvement projects.

Several residents spoke in favor of and against the tax.

Tony Corvo said he is against the income tax because it takes power away from the residents to decide how much they are taxed.

Former council member Carol Graff said she is in favor of the income tax, saying residents who don’t have an income won’t pay the tax. But if they own property they still have to pay property tax.

It would reduce the city’s reliance on property taxes to provide municipal services.

By Scott Halasz

Contact Scott Halasz at 937-502-4507.

Contact Scott Halasz at 937-502-4507.