BEAVERCREEK — The Beavercreek City Council has passed a resolution on Monday to place an income tax and property tax reduction proposal on the November ballot.
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The proposal would establish a 1% municipal income tax and a 50% reduction in the city’s property tax revenue, according to a city spokesperson.
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If approved by voters on the Nov. 3 primary election, the income tax would take effect on July 1, 2027.
The city council previously passed an ordinance to establish a municipal income tax code, which creates the administrative framework for implementing a municipal income tax.
Under the proposal, residents who work outside of Beavercreek and already pay an income tax to another municipality would receive a 100% credit.
Additionally, Ohio Law and the city’s tax code would exempt several types of income and people from being subject to Beavercreek’s income tax, such as individuals with no earned income and income earned by those under the age of 18.
If approved, the proposal would terminate nine city property tax levies totaling 10.85 voted mills, which generate around $15.2 million of the city’s annual property tax revenue, according to the city.
The city cited a study done by Miami University, which projected that implementing a 1% municipal income tax would generate around $19.6 million annually.
“The estimated $4.4 million difference between the eliminated levies and projected income tax revenue is intended to help provide the city’s current service levels, address future funding gaps through 2030, offset rising costs and limited property tax growth, and cover the shortfall in income tax collections during the first few years of implementation,” the spokesperson said in a release.
The city will host two town halls to share information and answer questions about the city’s finances. The first is Sept. 15 at the Beavercreek Senior Center on Dayton-Xenia Road, and the second is on Oct. 15 at the Beavercreek Golf Club on New Germany Trebein Road. Both are from 6-8 p.m.
Additional information on the proposal can be found here.
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