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Finance committee warns state proposals to cut property taxes could cost Stow millions
Summary
Finance committee members and staff discussed a taxpayer petition and House legislation that would reduce or eliminate real estate taxes. City staff told the committee that Stow’s inside millage yields roughly $10 million and that eliminating it would remove an estimated $8.3 million for the general fund plus other dedicated amounts.
Stow’s Finance Committee reviewed a staff briefing on proposals and a taxpayer petition that could eliminate real-estate property taxes or the city’s inside millage and discussed potential local impacts on June 12, 2025.
Finance Director Mr. Parenak described the stakes: the city’s inside millage base produces about $10,000,000 in revenue. Using 2025 receipts as an example, he told the committee that losing the inside millage would remove an estimated $8,300,000 from the general fund and about $422,000 combined that normally funds police and fire pension obligations. He also noted that the city’s voter-approved EMS levy is included in the inside-millage base and that, for a single year, that levy would represent about $3,400,000 of revenue currently collected through the inside millage base.
Committee members and staff discussed options the state has offered to backfill revenue in hypothetical scenarios: counties could raise their sales tax by up to 1 percentage point or cities could seek income-tax increases, but local income-tax increases above 1 percentage point require voter approval. The committee also discussed other policy options raised at recent municipal conferences, such as reducing income-tax reciprocity percentages as part of broader revenue adjustments.
Representatives noted that House Bill 335 (introduced in the transcript attribution to Representative David Thomas) relates to police and fire pension adjustments and the inside millage discussion. Committee members emphasized the timing and uncertainty: the taxpayer petition was described as recently introduced and able to collect signatures into the next calendar year, and legislative proposals are active in the Statehouse. No formal committee action was taken; the briefing was informational to ensure council and staff factor the risk into five-year planning and the capital/budget process.
Council members urged continued monitoring and public outreach so residents understand potential service and tax implications if state-level changes proceed.
