Beavercreek income tax levy denied; city ​​to take a step back, review

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“That’s reality, that’s what it is,” he said. “I think the electorate has spoken and we have to comply. If we can maintain the status quo somehow, we will, but I don’t know how.

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If passed, the income tax would have replaced five existing property tax levies totaling $8.1 million. The five levies, costing about $134 per $100,000 of home value per year, would be eliminated for the 2022 tax year. next and includes a 100% credit for taxes paid to other cities. .

Beavercreek is one of only three cities in the state, including Bellbrook, that does not levy income tax, according to state records. Nearby Kettering, Xenia, Fairborn, and Huber Heights all have city income taxes of 2% or 2.25%.

It was the city’s third attempt to impose an income tax in the past decade.

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The 1% tax would have generated about $12 million in the first year, rising to as much as $18 million a year from people working in Beavercreek, City Manager Pete Landrum previously told the Dayton Daily News.

The income tax funding would have been used to replace revenue from abolished property tax levies, as well as to hire five police officers and five civil servants, to complete infrastructure improvements and to fund general operations of the city, according to the tax ordinance. Beavercreek has a $200 million backlog of incomplete infrastructure projects, according to city officials, with no dedicated funding source.

Income tax opponents said the measure would have put undue pressure on younger generations, while proponents say without it the city’s current funding model is unsustainable.

The reduction in property taxes would have represented $6.9 million in reduced revenue annually for the city. In the first year, tax revenues for residents of Beavercreek would have been $5.4 million.

Recent census data indicates that 23,365 people work in Beavercreek but live elsewhere. Just under 16,000 people live in Beavercreek but work in other towns, and 2,958 people live and work in Beavercreek.

The types of income that would have been taxed include earned income, such as wages, salaries, tips and commissions, as well as lottery, gambling and sports winnings, according to city documents.

Types of income that would not have been taxed include retirement income, such as social security benefits, pensions, retirement benefits, annuities, and disability benefits. Military, Reserve and National Guard salaries would not be taxed, nor would “intangible” income such as interest, capital gains and dividends.


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