Beaver Creek council advances 1% income tax ordinance, proposes 50% property tax reductions

Beaver Creek, Ohio — The Beaver Creek City Council on Monday advanced Ordinance 26-10, a proposal to impose a 1% municipal income tax and eliminate or reduce specified property tax levies by 50% after the 2026 tax year, moving the ordinance to a second reading after extended debate and public comment.

Finance staff presenting the ordinance said the measure is intended for general municipal purposes — operations, capital needs, infrastructure and debt — and would be effective July 1, 2027, if voters and subsequent administrative steps allow. "The income tax would become effective July 1st, 2027," the presenter, Mr. Graham, told council members, and the measure would include a 100% credit for income taxes paid to another city up to 1% (SEG 557–563). The presentation cited a Miami University model estimating roughly $19.6 million a year at a full run rate for a 1% levy, with an expected three-year ramp-up (approximately 60% in year one, 85% in year two, and about 100% by year three) (SEG 643–660).

Why it matters: Council supporters said the proposal would deliver property tax relief for many homeowners and create a more diversified, resilient revenue base should a statewide property-tax abolition move forward. "This initiative is largely funded by non-residents," Council member Bales said during debate, urging the council to adopt a revenue source that captures income from people who work in Beaver Creek but live elsewhere (SEG 1009–1014). Proponents argued the approach spreads the cost of municipal services more broadly while preserving local service levels.

Key details: Staff said the ordinance specifies which levies would be reduced or eliminated and that the revenue modeling uses effective tax rates; however, the secretary of state requires original millage figures for ballot language, which can confuse voters despite arriving at the same dollar figures (SEG 886–931). Presenters warned the city could face a multi-year budget shortfall during the transition: staff projected roughly a $3.5 million deficit during 2027–2029 and a smaller deficit in 2030 under current assumptions (SEG 694–700, SEG 1243–1249).

Public comment and legal clarifications: Resident Bob Trout questioned how the levy savings would be calculated and urged charter protections to require voter approval for future changes to the baseline rate; he also asked where the ordinance language originated (SEG 817–875). City counsel and staff responded: the law office said it drafted the ordinance to meet Ohio code requirements; and city attorney Mr. Lonsbury clarified that under Ohio law any increase above 1% would require voter approval, while Beaver Creek’s charter imposes additional requirements that the council must follow (SEG 938–956, SEG 2172–2177).

Council action and next steps: After discussion, a motion to move Ordinance 26-10 to a second reading passed on a voice vote. The second reading is scheduled for March 23; if council adopts a resolution to place the income tax question on the ballot it must certify that resolution to the board of elections by Aug. 5 for inclusion on the Nov. 3 ballot (SEG 796–811, SEG 1895–1901).

What remains unresolved: Council members repeatedly stressed that the detailed financial impacts depend on voter response, collection rates for nonresident workers, and possible statewide changes to property-tax law. The precise ballot language will be constrained by state rules (original millage shown), and some residents raised concerns about charter guarantees and long ordinance length. Council members said they will provide calculators and public information tools if the measure proceeds to the ballot.

The council did not vote to place the measure on the ballot at Monday’s meeting; it advanced the ordinance to a second reading and signaled more public discussion and analysis ahead of any ballot referral.