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Beavercreek council amends and approves 1% earnings tax ordinance after extended public comment
Summary
After staff clarified language and council added an amendment stating the elimination of specified property‑tax levies is permanent beginning tax year 2027, the Beavercreek City Council reopened public input, heard both opposition and support, and approved Ordinance 26-10 by voice vote to place a 1% municipal earnings tax paired with a 50% cut to the city's portion of property tax starting in 2027.
Beavercreek City Council approved Ordinance 26-10 on second reading on March 23, adopting a 1% municipal earnings tax and amending the ordinance to state that certain property-tax levies would be permanently eliminated beginning tax year 2027. Staff and legal counsel characterized the change as a minor clarifying amendment; council voted to amend the ordinance (motion referencing packet page 59) and then reopened public input.
The reopened public comment period featured multiple speakers expressing both opposition and support. Opponents raised concerns that the city charter requires voter approval for income taxes and that the ordinance could leave the city able to raise rates without direct voter control; callers also asked for explicit protections (exemptions for retirement accounts and a prohibition on future increases without a public vote). Supporters, including some residents and multiple council members, said the measure diversifies revenue, shields many seniors (noting municipal earnings-tax practice in Ohio often exempts most retirement income) and positions the city to respond to a possible statewide property-tax abolition movement.
Council members and staff addressed specific concerns: they said the draft tax code explicitly excludes residents under 18 from the tax, the charter contains language requiring voter approval to 'levy' an income tax (which staff and counsel interpreted as covering increases), and state law requires voter approval for rates above 1%. Council members argued that a modest 1% tax paired with a 50% reduction in the city's property-tax portion will protect services while offering property-tax relief. After debate, the council voted in favor of approving Ordinance 26-10 as amended by voice vote.
Next steps: the ordinance was approved by council action at the meeting; procedural and legal timelines for implementation and potential ballot placements were referenced but not completed at this session.
