Beavercreek council amends and approves 1% municipal earnings tax ordinance, drawing extended public comment
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Summary
After a lengthy public-input period and a staff clarification that the ordinance permanently eliminates specified levies beginning tax year 2027, Beavercreek City Council voted to amend and approve Ordinance 26‑10 to enact a 1% municipal earnings tax and restructure revenue to reduce the city's portion of property tax roughly 50%; council and legal staff said any increase above 1% would require voter approval under state law and the city charter.
Beavercreek City Council on March 23 approved, as amended, Ordinance 26‑10 to add a 1% municipal earnings tax to the city code and to permanently eliminate identified property‑tax levies beginning tax year 2027.
Staff presented a minor amendment clarifying that the ordinance language explicitly states the identified levies will be permanently eliminated beginning in tax year 2027; legal counsel said the change is a scrivener’s clarification and would not require an additional public hearing. After a motion to amend was seconded, council reopened public input at the request of residents.
A broad cross‑section of residents and organized speakers used the reopened public-comment period to urge divergent outcomes. Opponents raised concerns about the loss of voter control and spending restrictions, the possibility of future tax increases without voter consent, and potential impacts on seniors and retirement income. Edward Malouf said he would vote against the ordinance unless the council added stronger spending controls: “I want to see something in there that prohibits that,” he said, arguing the charter currently gives residents protections but seeking explicit limits on future rate raises.
Supporters, including Debbie Alberico and other residents, said the proposal would reduce homeowners’ property tax burdens and spread costs to people who use city services but do not live in Beavercreek. Alberico told council the plan pairs a permanent 50% reduction in the city portion of property taxes with a modest 1% earnings tax and said municipal earnings taxes in Ohio generally exempt most retirement income.
Council members and staff repeatedly clarified legal constraints: city legal counsel and staff noted that Beavercreek’s charter requires voter approval for income‑tax levies and that state law requires voter approval for income taxes above 1%, so any increase beyond 1% would trigger a vote. Staff also noted the proposed tax code language specifies that individuals under age 18 are not subject to the tax.
After debate, Councilman Bales moved to approve Ordinance 26‑10 as amended; the motion was seconded and the council approved it by voice vote. Council directed that the motion and its conditions be recorded in the minutes.
The ordinance as amended would, if enacted through subsequent procedures, shift a portion of local revenue from property levies to the general fund derived from an earnings tax; voters would have the final say if council places a levy or increase on a ballot as required by law and the charter.
