The City of Beavercreek voters have turned down a proposed 1% income tax that would have generated an estimated $14 million dollars in the first year before the effects of COVID-19. Unofficial results show that the income tax has failed by a margin of 48.01% for the income tax and 51.99% against the income tax. The Ohio Secretary of State Frank LaRose gave county election officials until Nov. 18 to complete their final count of votes.
The 1% city income tax was intended to diversify and reduce its reliance on city property taxes. The City proposed allowing the 3.4 mill street levy to expire effective December 31, 2021 reducing city property taxes by $101.46 per $100k of home value per year. The income tax would have also helped the City to reduce and or eliminate future city property tax levies and thus change the City’s funding method.
The income tax would have required all persons working in Beavercreek to pay the tax, including non-residents and therefore contribute to the costs for City services. An estimated 75% of the workforce in Beavercreek are non-residents, which would have accounted for nearly an estimated two thirds of the revenue generated by the income tax.
If the tax had been approved by voters, the revenue first would have been used to fund street operations and capital projects that were previously funded by the expiring street levy. Additional revenue would have been used for general municipal operations, maintenance, equipment, municipal services, facilities, and to fund $200 million is backlog infrastructure and capital improvements.
Moving forward, the pressing need will be to ensure that we address funding options for the street levy that expires on December 31, 2021 as well as the backlog of infrastructure. The voted 3.4 mill Street levy is the main operating and staff funding for streets and public services.
“It was definitely a different and challenging election cycle due to COVID-19, which limited the traditional in-person educational and informational opportunities.” said Pete Landrum, City Manager. “Staff will meet with City Council to review the options to determine the next steps. We do want to take the opportunity to say thank you to all residents who took the time to vote” said Landrum.