Oak Harbor officials are considering a potential half-percent increase to the village’s income tax rate in an effort to decrease property taxes.
Mayor Quinton Babcock said at the council meeting on July 7 that the village is looking to potentially increase the current one percent income tax rate to 1.5 percent. If the village takes it to the ballot and passes it, they would then let the police and street levies within the property tax revenues expire in 2026.
Babcock held the first of three town hall meetings on the subject July 9. The next one is July 15 at 2 p.m., and the final one will be July 16 at 6 p.m. The next council meeting is July 21.
“We know that many residents feel their property taxes are too high,” Babcock said. “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.”
The process began with the first reading of an ordinance authorizing the income tax at the July 7 meeting. Then, they had the first reading of a resolution “declaring the necessity of an election on the question of the approval of the passage of an ordinance levying an additional 0.5 percent tax for police and street purposes in the village of Oak Harbor, Ohio.”
The process now includes letting the ordinance sit without a second and third reading for now.
Meanwhile, council will continue with the second and third readings of the resolution. That would allow the issue to be sent to the ballot. Should that take place and voters approve it, council would then do the second and third readings of the ordinance to put the change in place.
The council is still considering the issue, though, and through the town halls and the next couple council meetings, they will be looking to gauge the thoughts of residents.
“I think that's most important because I think what I really want to be clear on is if people think it's a bad idea, we don't have to do it,” Babcock said. “We have a lot of flexibility for the next month or so to take into account people's feedback and make tweaks or adjustments.
"And we're happy to do that, right? Because this is everybody's community and just because we think we have a good idea doesn't mean it's a good idea.”
If it should get to the ballot, it was discussed whether there should be explicit language stating that if the income tax increase is passed, the property taxes would decrease.
Babcock said they don’t have the authority to do that, but they can make suggestions.
“We do not have the downright authority to tell the board of elections what language to put on the ballot, and that really is the secretary of state’s authority more than the board of elections on some level,” he said. “But what we’re doing is suggesting, based on the Ohio Revised Code and what it says should be on the ballot, this is what we’re suggesting they use.”
Ohio attorney general Dave Yost said July 9 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.
“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.”
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.
The village government receives around 15 percent of property taxes paid by homeowners, with the remainder distributed to entities like the school district, township, county, Riverview Nursing Home, etc.
“We are hoping that if we can reduce property taxes by five, 10, or even 15 percent, then it might make the burden of property taxes more manageable, especially for residents on fixed incomes,” Babcock said.
Vacant property registration ordinance
Babcock also brought up a potential ordinance for vacant properties at the July 7 council meeting.
He said they occasionally have problems with vacant properties, but fortunately not as many as other communities.
It’s an issue that has been discussed before, and the feedback included 76 percent of residents saying village officials should do more to protect neighborhoods from blight.
Babcock plans to put a first reading of a proposal at the next council meeting.
“If there are concerns, we can have a discussion or perhaps put it through a committee,” he said.
Short-term rentals
Another topic at the council meeting included the potential of regulating short-term rentals such as Airbnb. It could be something they review annually, or they could regulate specific districts.
Babcock said the village is just starting to see such rentals in residential areas.
“I think it warrants consideration from us,” he said.
One of the reasons to take a look at this now, Babcock said, is that the state legislature is considering a bill to eliminate local ability to control Airbnb’s.
There is a new compromise legislation at the state level that would grandfather in all existing regulations, but local governments wouldn’t be able to pass any new regulations. So, by getting something done now, they can get grandfathered in.
“The legislature is gone until the fall, so let’s get something done before the fall,” Babcock said. “If they don’t pass it, we can tweak it, but if they do, at least we have a baseline.”
Sergeant promotion
Police sergeant Travis Logan was taken off his six-month probation, which started at the Jan. 7 council meeting.
“He has been a great asset to our community since day one of his hire, and he’s provided great leadership for our department,” Oak Harbor police chief Eric Parker said.