More Butler County townships considering $5 license plate tax

Credit: DaytonDailyNews

Liberty and Ross townships are getting closer to adding $5 onto motor vehicle registration fees to deal with growth and rutted roads.

When the Ohio legislature passed the transportation bill last year increasing the gas tax, it included a provision that allows jurisdictions to increase fees for vehicle registration from $5 to $10.

Liberty Twp. Trustee Christine Matacic said the trustees will hold a work session next week about the issue. Both the additional tax, which would generate$186,00 per year, and a potential 0.2-mill road levy will be discussed. She said preliminary estimates show a levy could generate $211,000.

The township has been transferring $1 million from the general fund annually to the road and bridge fund for many years to help pay salaries, according to Matacic.

RELATED: Liberty Twp. trustees mulling additional $5 vehicle registration tax

“We are very cognizant of not asking for more than what we really need but at the same time knowing that we have to be prepared for the long term,” Matacic said.

Matacic said the township will have a $23,041 deficit in the road and bridge fund by 2024, and it expects to add roads. Liberty’s road inventory has increased by 17.5 miles since 2012.

Trustee Tom Farrell told the Journal-News he doesn’t “like taxes of any sort.” He is looking at the $5 fee as a way to possibly curb the need for a levy.

“I want to know what it’s going to impact. What I don’t want to do is have to burden our residents with an operating levy for roads,” Farrell said. “So we need to make sure we’re saving enough money to service the roads and infrastructure as we grow.”

Trustee Steve Schramm said he doesn’t envision the township acting too quickly on the issue.

“We’re going to kick the tires on it again. But I feel like we owe it to our residents to at least get their feedback on it,” Schramm said.

Jurisdictions do not need approval from their constituents to levy the additional fee, but both Liberty and Ross townships plan to give their residents input.

Ross Twp. Administrator Bob Bass said doubling the tax to $10 would generate roughly $80,000 annually. The trustees have scheduled two public hearings for April on the issue.

Trustee Ellen Yordy said the township “is moving forward with the $5 license plate tax.”

“We must maintain the upkeep of our township roads,” she said. “This is a way to have the people who drive on these roads help pay for their maintenance.”

Kathleen Fuller, a spokeswoman for the Ohio Department of Transportation, said the townships would have to pass legislation by July 1 to begin collecting the money in 2021.

RELATED: Ohio’s new gas tax: More revenue means Butler County communities are changing plans

Elsewhere in the county, several Middletown city council members tabled the $5 fee issue recently, to review other options and alternatives in a more comprehensive manner, to raise additional funds for road and street paving. Middletown currently collects $5, which generates about $235,000 per year.

Hamilton is the only jurisdiction to enact legislation approving the new tax thus far. The city expects to collect about $300,000 annually from the tax, but the funds can only be used to fix roads, according to Brandon Saurber, director of neighborhoods.

“Repair of our streets is critical to the continued growth of Hamilton,” Saurber said previously.

Other jurisdictions in the county, like the cities of Fairfield and Trenton, Hanover and West Chester townships are not imposing the added tax. Trenton saw a street levy fail last year, so officials haven’t considered the additional fee.

“We will use available street funds for paving and leverage other funds, such as grants, if and when available,” said Trenton Finance Director Mike Engel.

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