Beavercreek presents Miami University study showing 1% income tax could yield roughly $19.6 million at full collection

Beavercreek officials onstage at a city town hall described a preliminary Miami University analysis estimating that a 1% municipal income tax could generate roughly $19,600,000 annually at full collection — with actual first-year receipts likely much lower because collection typically ramps up over time.

The analysis, presented to residents at the Beavercreek Golf Course by City Manager Pete Landrum and Finance Director David Graham, was framed as informational. Landrum said the study was authorized by city council and that Miami University will present fuller results to council on Sept. 8.

The study’s headline estimate assumes full collection; presenters warned the city should expect a lower initial take. “I will say you probably never get to a 100% collections,” Landrum said, noting some peer cities report collection rates near 75 percent and that the first year is commonly closer to 60 percent.

Why it matters: Beavercreek relies heavily on property taxes and grant matches to fund services. Finance Director David Graham told the meeting that property taxes represent roughly 56% of total city revenue and, when grants that require local matches are counted, the share rises to about 71% — a concentration city leaders say makes revenue diversification a strategic priority.

City staff reviewed how an income tax would work in practice and who would pay. Under Ohio law, taxes are applied first where income is earned and second where a taxpayer lives; presenters said the city’s charter requires voter approval to adopt an income tax (unlike some Ohio municipalities that can impose a 1% tax without a public vote). City examples used in the presentation illustrated common outcomes: a resident who already pays a higher tax where they work would generally not owe additional Beavercreek tax if the city’s rate were lower or if the city offers a full credit for taxes paid elsewhere.

Graham outlined constraints and comparisons. He noted prior local income-tax proposals in 2020 and 2022 that projected about $18 million at full collection; Miami University’s estimate is similar when annual growth is applied. Landrum and staff emphasized the numbers are model-driven and that employer payroll data is not available until a municipality actually administers an income tax, which limits precision in projections.

City leaders also flagged state-level proposals that could alter local revenue calculus. Presenters referenced the governor’s property-tax reform work group, a proposed constitutional amendment that would limit property-tax calculations, House Joint Resolution 6 (a legislative initiative cited by staff), and other items such as proposals to change approval thresholds for levies. Landrum said those pending or proposed state changes are being monitored because they could materially affect municipal budgets.

No council action on an income tax was announced at the meeting. Landrum repeated the city’s legal and political constraints: under the city charter Beavercreek cannot impose an income tax without voter approval, and city staff are limited in how they may publicly discuss levy proposals in the run-up to an election.

What’s next: Miami University will present detailed findings at the Sept. 8 council meeting, and staff said council retains discretion to consider (or not) any recommendation. The presentation was informational; city leaders encouraged residents to attend the university briefing for the full methodology and assumptions.