Serving Lucas, Ottawa, Sandusky and Wood Counties
Council officials in Oak Harbor have approved a resolution to put a half-percent increase to the village’s income tax on the Nov. 4 ballot. In turn, the goal would then be to lower property taxes.
Back in July, mayor Quinton Babcock started the public input process to gather what village residents thought were the most important things that should be taken into consideration when thinking about future taxes or levies in the town.
“We know that many residents feel their property taxes are too high,” Babcock said in July. “By considering a modest income tax, we have the opportunity to reduce reliance on property taxes while strengthening our long-term financial position. It’s about making sure we can fund core services like police and infrastructure, while also being responsive to what we’re hearing from the community.”
A Facebook survey was created, and Babcock got approximately 50 responses. Village officials had potential priorities listed, and residents could add their own.
The options were protecting seniors and others on fixed incomes, reducing property taxes, maintaining existing village services, sharing more costs with community members that work but don't live in the village, supporting future economic growth and community development - plus resident-submitted priorities.
Babcock said the top three that “rose to the top by a mile” from the majority of people were protecting senior citizens and others on fixed incomes, maintaining existing village services, and reducing property taxes.
“Those are the top three priorities that folks expressed on what they thought tax policy and the Village of Oak Harbor should accomplish at this point,” Babcock said. “We definitely got some really good feedback on both sides - people who felt that this wasn't the right direction and that those who thought it was the right direction.
“The people who are going to pay less generally are folks who don't have taxable income under the municipality, such as social security that isn’t taxable, or other pensions typically, and those who own a property. And the folks who are going to pay more are people who make a lot of money relative to the median income.”
Babcock said with the feedback, village officials felt it was worthwhile to put the issue on the ballot and let the voters decide.
“Those are the priorities people expressed, and we felt when we look at what this change would accomplish, that's exactly what fits those priorities,” he said. “I don't think this is just going to be a slam dunk where everyone thinks it's going to say, ‘Oh man, this is the most amazing thing ever.’ But we definitely got some good feedback on both ends of it. A lot of people were supportive and when we looked at what people actually wanted to occur in the village, we felt this was in alignment with that.”
One key point Babcock wanted to make sure residents understood is that this ballot measure would only impact taxes that go to the village. It doesn’t affect the separate fire and EMS districts.
Essentially, the village is proposing a half-percent income tax increase. In turn, they would then lower the village’s property tax rate by letting the police and street levies within the property tax revenues expire in 2026. The increased funding from income taxes would be used to make up for the property tax decrease.
It’s all about whether residents would be in favor of a higher income tax with the direct benefit of lower property taxes. Or voters could decide they want to keep the current rates the same for both. Either way, police and street levies would be funded the same in terms of dollars as the money value is offset.
“We're communicating that we're trading property tax levies for police and street services, for income tax funding for those same services,” Babcock said.
If the ballot measure passes Nov. 4, village officials would then let the police and street levies within the property tax revenues expire in 2026. That revenue generation lost would then be offset by the income tax rate increase.
Ohio attorney general Dave Yost said in July that property taxes have jumped 19 percent statewide over the past five years. There has been talk of a potential push to abolish property taxes in the state, so some of this talk is a way to get out ahead of any potential changes, as well.
Village officials said they recognize that residents are concerned about the burden of property taxes, and this approach could offer a way to begin addressing that concern— while still preserving essential services.
“I don't think we would be good stewards of our resources if we didn't look at how sustainable it's going to be,” Babcock said. “So I think this is a way of seeing if we can build a better system before the old one just falls apart.”
