The Press Newspaper

Toledo, Ohio & Lake Erie

The Press Newspaper

The Press Newspaper


       The Benton-Carroll-Salem school board and administration have scheduled two community meetings to answer questions about a 1 percent earned income tax issue that will be on the Nov. 6 ballot.

        The meetings will be held Sept. 11 and Oct. 11 at The Hub in Oak Harbor High School. Both will start at 5:30 p.m.

        If voters approve the tax, it would be in effect for five years and levied on district residents with earned income in or out of the district.      

        The administration, citing projections by the Ohio Department of Taxation, is estimating the tax will generate approximately $1.98 million annually. The revenues would be used for operating expenses.

        The taxation department defines earned income as wages and self-employment earnings,including earnings from partnerships.

        Income from interest, dividends, capital gains, pensions, social security income, rental income, lottery winnings, and income earned by estates are not subject to school income taxes.            

        An earned income tax is collected in the same manner as the state income tax; through employer withholding, or individual quarterly estimated payments, and annual returns. Employers are required to withhold the tax and submit payments to the state as they do the state income tax. There is a school district income tax return for those paying the tax.   

        With FirstEnergy looking to exit the generation component of the electric industry and sell or shutter its coal and nuclear plants, the B-C-S district is bracing for a major loss of property tax revenues.

        A recent devaluation of the Davis-Besse Nuclear Power Station has already caused B-C-S to lose about $4.6 million annually – about a quarter of the school system’s operating budget.

        Then there is the loss of reimbursement payments from the state – about $300,000 annually – that started when the public utility tangible personal property tax was phased out.

        In late March, B-C-S officials learned Gov. John Kasich signed legislation including a provision allocating about $1.8 million for three years in special funding to the district.

        But the special “bridge” funding isn’t a cure for the district in the long term, superintendent Guy Parmigian and Cajon Keeton, treasurer, say, noting that the proposed income tax won’t fully collect revenues for 18 months.

        To counter the financial losses, Parmigian said the district has cut payroll expenses from about $11.5 million in 2012 to $9.7 million this fiscal year.

        "This vote is about controlling our own destiny as a school district community. Voting for this earned income tax means doubling down on a very high performing organization in our community in this time of uncertainty.  The bottom line is that we provide a very good value to our citizens," he said.

        In May, voters rejected a 1 percent earned income tax by about 50 votes but approved a 3.89-mill property tax.

      The property tax is expected to generate about $1.4 million annually.

        Keeton and Parmigian will host the meetings.

Meet resource officer

        The district will hold an event for the community to meet Loren Welch, the district’s new School Resource Officer.

        It will be held Sept. 11 at 5 p.m. at The Hub at the high school.




What did you think about President Trump's State of the Union address?
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