Correction:
This story was updated to state that Issue 2 will go to the Summit County Council for approval.
Summit County voters on Tuesday overwhelmingly agreed to eliminate an unvoted-on property tax that funds local government and replace it with one that they approved.
Issue 2 will change the unvoted-on inside millage to what’s known as charter millage. The tax rate of 2.2 mills will not change, but by approving charter millage, voters have given county officials more control to keep taxes from spiking when property values rise.
It also eliminates taxation without a vote.
The proposal passed by a wide margin, with early results showing yes votes at more than 80%. It will now go to the Summit County Council for approval and will affect next year’s tax bills.
The proposal came as the state legislature is considering property tax relief measures. Brian Nelsen, the chief of staff for Summit County Executive Ilene Shapiro, said he thought it made sense for the county to do so as well.
He called the proposal “responsible property tax reform.”
Issue 2 caps property tax raises by Summit County at 3%
Issue 2 will cap the new charter millage at the current 2.2-mill level. But that tax rate could fall if property values increase. The proposal capped any increase in tax collections at 3%, so if values increased beyond that level, the millage rate will be reduced so the county doesn’t collect more than the maximum 3% annual increase.
Similarly, if values fall, the county cannot raise rates more than 3% in a year and would see a decrease in collections.
“To continue to see 20% growth on what’s really unrealized gains for property owners is not fair,” Nelsen said in explaining why the issue was proposed.
The county currently gets about $41 million from the tax, money that is used to fund public safety and other services.
The change will provide budgetary continuity, Nelsen said, and keep tax collections from increasing or decreasing too quickly.
“This inside millage piece is vitally important to the operating budget,” he said. “The need to protect it for us is extremely important.”
The charter amendment will also change the rules for how many votes it takes for county leaders to change sales taxes, property conveyance, tag taxes, or other issues that require a vote.
Now, it takes a simple majority, but the new rules mean 60% of Summit County Council members, plus the County Executive, would need to agree to make a change.
The higher threshold was designed to protect taxpayers and limit tax increases, Nelsen said.