Income tax levy receives initial approval

FORT RECOVERY — An income tax levy may be on the ballot in November.

Fort Recovery Village Council approved legislation on a first reading during a special session early Friday, Independence Day, to move forward with a levy that would increase the income tax by 0.5 percentage points.

Village administrator Randy Diller explained the council would need to approve its 2026 budget at its meeting that was held Monday. The village was to indicate plans to collect from its existing four real estate tax levies as well as the income tax levy. If the latter is voted into effect, noted Diller, the village will decide to “zero out” the real estate tax levies so it would not collect on them.

The village’s four real estate tax levies, totaling at 9.8 mills — in Ohio, property taxes are charged as millage, with one mill equal to one-tenth of a cent — and generating about $300,000 annually.

By creating an income tax levy, the village would begin collecting a 1.5% income tax, up 0.5 percentage points from the current rate. Diller said that alone would generate about $200,000 more than the real estate tax levies.

A Fort Recovery taxpayer would save an average of 14% each year on their total real estate tax bill without the levies, Diller added.

He pointed out a majority of the surrounding communities collect a 1.5% income tax.

Diller noted income tax is paid only on earned income, gambling winnings and some business earnings. Income tax is taken out of residents’ paychecks. Real estate taxes are billed twice a year.

He talked about discussion at the state level regarding real estate tax burdens. Schools are funded through real estate tax.

Diller talked about how doing away with real estate tax levies and raising the income tax would help residents on a fixed income, such as those in retirement or a governmental aid program.

“I think it just streamlines it, it spreads it out a little bit more and it helps with that real estate tax burden to those that really need some assistance,” said Diller.

He and other council members noted their intentions Friday were not to hide the decision from the public, addressing allegations made on Facebook. In order to pass the legislation Friday, he noted, council needed to have five members present to approve it on a first reading.

Diller suggested the council discuss Monday how to get the information out to the public, potentially hosting a public forum to address questions and problems. He also suggested asking the public what they’d like the extra dollars to be used for.

“The decision we’re making today is not to do it, the decision today is to ask the public if we should do it,” Diller noted.

If the income tax levy fails, he added, the village can decide to rerun one of its real estate tax levies up for renewal next year.

Council members, absent Erik Fiely, then declared intent to proceed with the levy and directed fiscal officer Roberta Staugler to file a certified copy of the intent with the board of elections for placing the income tax levy on the ballot.