Springboro seeks renewal of 0.5% earned income tax levy in November election

Springboro voters will decide in November whether to renew a 0.5% chunk of the city’s 1.5% earned income tax for the next 20 years.

Voters will see it as Issue 21 on the Warren County general election ballot Nov. 7. City officials said because it is an earned income tax, it does not apply to social security, unemployment or pensions.

As a renewal levy, it would keep the current tax rate the same, and extend it into the future.

This 0.5% piece of the city’s income tax was originally approved by voters in 1988 to generate revenues for water and sewer treatment plant improvements as well as other ongoing capital improvements, according to City Manager Chris Pozzuto. He said that 0.5% tax is set to expire at the end of the year when those projects are paid off.

“From a capital improvements standpoint, the renewal is necessary to keep city operations running as they have been,” he said. “If voters approve, it will not raise taxes.”

Pozzuto said the 0.5% generates about $5.6 million each year and is critical for the city’s general operations and capital improvement program. Projects include the annual street resurfacing program, filling potholes, park development and maintenance, water and sewer infrastructure, and the purchase of snow plows and police vehicles, he said.

Income tax collection is the largest single source of revenue for the city of Springboro. The revenues are generated from employee withholdings, taxes on the earnings of Springboro businesses and taxes paid by individuals. The income tax comprises 80% of the city’s General Fund.

After state cuts to Local Government Funding, Springboro increased its reliance on local income tax revenue. The city has one of the lower income tax rates in the region, with the most common rate among Dayton’s larger suburbs at 2.25%.

In 2023, Springboro officials have committed $13.75 million for capital improvement projects for 2023, which includes $4.07 million for street improvements and maintenance.

Pozzuto said if the income tax renewal fails in November, Springboro City Council will have to immediately cut $5.6 million from the 2024 budget, which council will consider in late November. He said this would affect street repaving as the city has been repaving 20 to 25 streets a year. Other budget cuts would be in park maintenance as well as delaying new purchases of police vehicles and snow plow equipment.

Residents with questions about the income tax renewal can send questions via email to askus@cityofspringboro.com or call 937-748-4343.

Income tax rates, largest local cities

2.75% — Trotwood

2.5% — Dayton, Riverside

2.25% — Kettering, Huber Heights, Xenia, Centerville, Miamisburg

2.0% — Fairborn

1.75% — Troy

1.5% — Springboro

1.0% — Lebanon

None — Beavercreek

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