Counties would vote on new local taxes

Summary#

SB-478 is an introduced Ohio bill that would amend Ohio Revised Code sections 5739.021 and 5739.026, which govern county sales and matching use taxes. Its stated goal is to require voter approval for certain tax levies in counties with more than one million people; it is not law, and the bill gives no start date.

  • For a county over that population threshold, a new tax or rate increase under section 5739.021 would need voter approval at the next general election that is at least 90 days after the resolution is sent to the board of elections.
  • If such a section 5739.021 tax is adopted as an emergency measure, it could take effect before the election, but the county must put a repeal question to voters at the next qualifying general election.
  • For a county over the threshold, a tax under section 5739.026 used only for the county general fund would also need voter approval at the next qualifying general election. If adopted as an emergency measure, it could take effect before the vote, but voters must be given a chance to vote on repeal.
  • The bill does not change the listed tax rates or allowed purposes. Section 5739.021 permits rates up to 1%, with some rates allowed to exceed 1% under stated limits; section 5739.026 permits rates up to one-half of 1%.

What it means for you#

  • Voters in an affected county: For the covered new levies and rate increases, voters would decide at a general election. For an emergency levy, the tax could begin before the vote; voters could then vote to repeal it.
  • Residents and shoppers: The bill does not itself add a tax or raise an existing rate. If a county adopts a covered tax and it takes effect, shoppers would pay it on taxable purchases; the matching county use tax also applies under the existing rules.
  • County governments: County commissioners would have to submit covered non-emergency proposals to voters at the next qualifying general election. For covered emergency measures, they would have to submit a repeal question.
  • Businesses that collect sales tax: They may have to collect a changed local rate if a covered tax takes effect. The bill does not change the existing tax-collection and vendor-notice rules.

Money#

No cost information is in the available material.

  • The bill does not itself impose a tax, appropriate money, or set a new tax rate.
  • It requires election questions for the covered proposals, but the material gives no estimate of election or administrative costs.
  • No estimate is provided for costs to counties, businesses, or shoppers.

What is unclear#

  • The current versions of the two Ohio Revised Code sections were not supplied, so the bill’s changes could not be fully checked against current law.
  • The bill does not state how population is measured or the date used to decide whether a county is over one million.
  • It does not give an effective date. It applies to resolutions adopted on or after the bill’s effective date.
  • The text does not explain how the new election requirements would interact with existing referendum procedures.
  • The bill does not name any county or estimate how many proposals, elections, or tax changes would be affected.

Case for#

  • The bill appears intended to give voters a direct say before certain county taxes or rate increases take effect.
  • Requiring a general-election vote could make the decision on those levies part of a scheduled countywide election.
  • For emergency levies, a required repeal vote would ensure voters get a say even though the tax may start before the election.

Case against#

  • An emergency tax could take effect before voters decide whether to keep it. The bill requires a repeal vote, not prior approval, in that case.
  • Requiring a general-election vote could delay a non-emergency tax compared with a process that allows an earlier election.
  • The bill does not define how the population threshold is measured, which could leave uncertainty about when the new rules apply.