Beavercreek city council members on Monday unanimously approved putting a 1% earned income tax on the Nov. 3 ballot.
Repeatedly, they said this will give the city a needed diverse income stream.
It will be levied on people, 18 years and older, who work in the city. According to the city, nearly 23,000 non-residents work in Beavercreek and about 3,000 work and live in the city.
David Graham, the city’s finance director, said people who work remote will also have to pay.
“Your company is in Cincinnati but you work from your home, your home in Beavercreek, then you’d be subject to the Beavercreek municipal income tax because you’re not paying it in Cincinnati,” Graham said.
Although, Graham said it would take several years before the city had an accurate count of Beavercreek-based remote workers.
Certain incomes are exempt including, pensions, 401Ks and IRAs, Social Security, active-duty military pay, qualifying military spouse income, child support and unemployment compensation.
The ballot issue also calls for cutting property taxes in half - eliminating nine levies totaling approximately $15.2 million in revenue. Annually, the city collects $30.7 million in property tax revenue.
If voters pass this measure, it will go into effect July 1, 2027.
Based on a 2025 study by Miami University, a 1% municipal income tax is projected to annually generate about $19.6 million. There is an estimated $4.4 million difference between the eliminated levies and the money generated by this proposed measure. In a press release, the city said these funds "will help offset rising costs and an anticipated financial shortfall in income tax collections during the first few years of implementation."
According to city leaders, all money generated by the earned income tax will go into the general fund to cover the costs of various infrastructure projects, staff needs and equipment.
Also under this proposal, city residents who already pay at least a 1% municipal income tax to another city will not pay anything to the city of Beavercreek. However, if the community where they work has no income tax or a rate less than 1%. They would pay the difference up to 1% to Beavercreek.
The city will host two town halls. The first will be Sept. 15 at the Senior Center on Dayton Xenia Road. The second will be Oct. 15 at the Beavercreek Golf Club on New Germany Trebein Road. Both will run from 6 p.m. - 8 p.m.
