Sheets, the former Human Resources director and commissioners’ attorney, offered a proposal to the commissioners on Monday. He said they could lower property taxes collected by the county general fund and other county level taxing agencies and raise the 6.5% sales tax rate to mitigate the revenue loss.
“I think if we don’t do something the unintended consequence is and what’s going to occur next year is no one’s going to vote for a tax increase if they get hit with this,” Sheets said. “So in a way you can help everyone if you will take the step now to hold the line for everybody.”
He noted the county has the lowest sales tax in the state and everyone pays those taxes, not just people who live here, “tell the people if you will vote for this we will drop the real estate tax and spread the pain amongst everyone who comes here.”
The three commissioners didn’t respond to Sheets — they don’t typically address comments made during the public input section of their meetings. All three told the Journal-News raising the sales tax isn’t something they will do. County Auditor Nancy Nix has already asked all taxing bodies to forego the tax windfall huge property value increases will provide — the request is under consideration countywide.
“I understand the concept that he was discussing with us, but lowering one tax and raising another tax I just don’t see that as a permanent solution. That’s under the assumption that you’ve got to raise taxes somewhere, I don’t want to raise taxes anywhere,“ Commissioner Don Dixon said. “The only argument you’ve got is everybody pays the sales tax, but it just doesn’t work for me.”
Commissioner T.C. Rogers said he will not consider hiking the sales tax and he isn’t even certain how Sheets’ proposal would work.
The commissioners approved a structurally balanced $120 million general fund budget and expect to have a healthy beginning general fund balance of $131.4 million to start next year. Sales tax is the largest income source and collections have increased 37% since since 2019. Prior to the pandemic shoppers contributed $40.8 million to the county coffers and last year $56 million. The county is the only local entity that collects the tax.
These three commissioners have never considered raising sales tax, not even during lean times and Commissioner Cindy Carpenter told the Journal-News “I don’t think you’re going to hear us say that now.”
“There’s no call for it at this point in time,” she said.
The state tax commissioner ordered a median countywide value hike of 42% a few months ago — the state will now accept a median 37% jump. Butler County Auditor Nancy Nix told the Journal-News the final increases are set and the highest median increase is in Monroe at 41% and the lowest is 25% in the little sliver of Sharonville that resides within the county.
Nix said they went back and forth with the state three times fighting for lower increases, to no avail.
“We tried to get as low of value increases as possible, we don’t necessarily agree with the methodology they use, nor do we understand some of their methodology,” Nix said. “But they hold the cards and we must abide by the law.”
Middletown’s median value increase is 40% and officials say residents there will be the hardest hit because of their tax rates. Property value increases don’t automatically translate to property tax hikes to the same degree. Nix’s Real Estate Director Mike Stein estimated in Middletown — property tax bills will increase 27% to 30%.
Sheets told the commissioners “you’re the taxing authority for virtually every county agency” and asked them to exercise their power to help the taxpayers.
“This is a political decision, to the extent you can I would ask you to modify the rates of everyone you are the taxing authority for, so they stay at a rate you approve,” Sheets said.
County agencies like Developmental Disabilities and Mental Health and Addiction Recovery Services have their own governing boards, although the commissioners must approve when they put levy requests on the ballot.
Nix told the Journal-News the county budget commission — which is comprised of the county auditor, prosecutor and treasurer — that reviews the tax budgets of all taxing bodies within the county, technically can order reductions.
“We have the budget commission but the budget commission just doesn’t have a lot of teeth,” she said. “If they can show need we can’t do anything about it.”
Sheets could not be reached for comment.
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