How the process to raise sales tax works
Due to decreased revenues, some elected county officials and department heads have had to utilize staff furloughs, announce layoffs, leave vacant positions unfilled and consider shortening office hours.
Sheriff Daniel A. Dunlap recently laid off two deputies. The Elections Board will implement furlough days, and potentially consider other cost-cutting options, because there is a $130,000 difference between what the department requests and what commissioners propose.
The reasons for the declining revenues?
Interest earnings in 2008 provided the county with $6.9 million. But rates remain at historically low levels, meaning revenue dipped to $4 million in 2009 and shrunk to $2.18 million for 2010 as higher returning investments came off the book. This revenue is projected to provide $1.25 million this year.
Collections from annual property taxes have dropped because property valuations that determine how much one’s home and land are worth declined two years ago by 10 percent in the county — and aren’t likely to rise when the triennial update is completed next year.
Sales tax revenues are the county’s biggest source of revenue, and collections have remained flat. Sales taxes generated $14,524,182 in 2009, $14,519,064 in 2010, and is projected to be around $14.1 million this year.
The only controllable option commissioners have to increase revenue is to raise the county’s sales tax. The idea is unpopular and not one commissioners are seriously considering.
Should the commissioners ever change their mind, there’s a process they would have to follow to do so.
How it would work
Ohio law permits county commissioners to levy additional sales tax by increments of a quarter of 1 percent by adopting a resolution that generally must state the tax’s purpose and how long it would be in effect.
Two public hearings would need to be conducted before passing the resolution. The second hearing must be held not less than three days, nor more than 10 days, after the first.
In the resolution, commissioners may — but are not required to — direct the Elections Board to ask voters whether to approve the increase.
If the resolution is adopted as an emergency measure deemed necessary for the immediate preservation of the public peace, health or safety, it must receive a unanimous vote and it needs to state the reasons for such necessity.
Voters can use a referendum to prevent a non-emergency tax from going into effect 30 days after the resolution is passed. An emergency tax is not subject to a referendum, but voters can decide to repeal it by petition.
The petition would need to be filed at least 75 days before the general election in any year and must be signed by at least 10 percent of the voters who voted in the most recent gubernatorial election.
If a tax were to be repealed by voters, it would be effective after the current year.
Announcements, endorsements
Highland Heights Mayor Scott Coleman announced he will seek a third term in office this November.
Fundies
Willoughby Hills Councilman David M. Fiebig: Spring Fever party, 5 to 7 p.m., March 22 at Willoughby Hills Community Center. See Joyce Hribar Fiebig.
John Arthur Hutchison’s column appears Sundays in The News-Herald. View it online at www.northernohiolocalpolitics.blogspot.com.
JHutchison@News-Herald.com
Twitter: @newsheraldjah
Labels: Daniel A. Dunlap, David M Fiebig, Jamie Callender, Josh Mandel, Robert E. Aufuldish, Scott Coleman, Steven C. LaTourette, Tim Grendell
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