Apparently, you can have it both ways in Ohio. Selective income taxes are apparently OK if your township can’t pay the bills. Taxes that are being passed without a vote by the public.
The concept of urban townships is a farce that has been allowed to continue so we can supply income tax havens for the wealthy. There is absolutely no legitimate reasons for this form of government in urban areas – where the services are a hodge-podge between the county and the township. The cutoff in Ohio is 5,000 residents- with the main difference (until now) is that only cities can levy income taxes.
From today’s Dayton Daily News:
Walmart and Sam’s Club on Miller Lane agreed to an employee income tax that will help pay for police services, township trustees said Tuesday night.
The sister retailers called the township Friday and said they would become part of a Joint Economic Development District with Vandalia, paying income taxes estimated to be about $258,000.
Townships, which can not collect taxes, enter into these agreements with cities. Butler will collect 85 percent of the tax revenue, while Vandalia keeps 15 percent as fees.
“Nobody wants to put a levy on the ballot,” said Trustee President Michael Lang. “To me, this is a complete game-changer. We hope in a short amount of time to get the other businesses in the JEDD.
“We may still need a levy in the spring, but we have time to see where this puts us.”
Butler Twp. has been operating its 14-member police force on $1.1 million budget generated from a previous 4.9 mills levy, while also supplementing that money with an average of $350,000 yearly from its general fund. A 3.0 mills levy was estimated to generate $695,303 in new money, but that was before home values tied to the levy were downgraded last week. The extra revenue was going to go into the township’s general fund.
Trustees said they were looking to Miller Lane businesses for help since those businesses account for more than half the township’s police calls. The township has already laid off one officer, and Chief Danny Hobbs retires at the end of the month, further reducing the staff to 13.
It was feared without a levy or a JEDD, the police force would have to be further reduced next year.
“They (Walmart and Sam’s) understand the importance of this,” Trustee Martin Russell said. “They don’t want services reduced.”
The real question is how many property tax abatements were granted along Miller Lane to “lure” jobs in the name of “economic development.” The Benchwood Road exit was an earlier version of the Austin Road exchange, adding more sprawl and unneeded retail space to an already overbuilt market. We will soon see the same problems for Miami Township thanks to their manipulations at Austin Road.
This “agreement” to collect income taxes for the Township made by members of the Township and Walmart- should be questioned in the courts. The trustees should be tossed from office- and ultimately, the township should be disbanded and merged into Vandalia (the taxing authority) immediately.
How the citizens of this community can stand idle while this kind of back room shenanigans take place is one of the reasons “Greater” Dayton is such a dysfunctional mess. If we moved to a “One Dayton” regional government, we wouldn’t be having this kind of BS going on.