WARREN, Ohio – Incorporation could be an option for the Mahoning Valley’s larger townships if a bill introduced by two state lawmakers is approved.
State Reps. David Thomas of Jefferson, R-65th, and Adam Mathews of Lebanon, R-56th, introduced a House bill in November aimed at streamlining the process for Ohio townships to incorporate into cities and municipalities.
The biggest factor in their decision to introduce the legislation was the number of large townships that put all the tax burden on property, Thomas said. Many townships have requested other revenue sources.
Under the proposed legislation, a township intending to incorporate still would have to be at least 4 square miles and have a minimum population of 5,000 residents, but it would no longer need approval of any city within 3 square miles.
“We’re not telling them to change, but it shouldn’t have to be the other surrounding municipalities’ decision to allow a township to become a city. And that’s what this bill changes right now,” Thomas said. If you’re within 3 miles of another city, if you want to incorporate, you have to get their permission.
“As we have necessary conversations on how best to maximize the efficiency of our government in Ohio, this bill gives townships and their voters flexibility to determine how best to structure their local government and continue providing quality services and protect their character,” Mathews said in a Jan. 27 news release announcing the legislation.
“Townships are the most efficient form of government when they’re very small, when they’re lean. But many of our big townships, just because of how many people they have, they essentially act like a city, spend like a city, but they tax like a township,” he said. “We’re not going to give townships income tax authority, but to allow them to decide for themselves if they no longer want to be a township. This bill makes it much easier.”
The discussion comes as a citizen’s group collects signatures for a statewide initiative to eliminate property taxes in Ohio via an amendment to the state constitution. Trustees for two of the Valley’s larger townships acknowledge they are at least keeping in mind the prospect of incorporation as a response to a potential elimination of property taxes.
Thomas reported he has spoken with officials in Howland, Austintown and Boardman townships, and the legislation’s co-sponsor represents several large townships around Cincinnati. None have said they would take advantage of the legislation if approved but are aware it is a potential tool for them to use.
Over the past year, Howland has studied “the potential impact that changes to and possible elimination of the real property tax system would have on its operations,” Howland Trustee Matthew Vansuch said.
The issue was discussed during a September meeting with Trumbull County and other township officials, and conversations have continued with area state representatives “about the devastating impact” that eliminating real property taxes would have on residents, township businesses and visitors, he said.
“And, yes, incorporation as a response, and as a possibility, has been raised,” he acknowledged.
“We are always exploring opportunities that would be best for Boardman Township residents,” Trustee Larry Moliterno said. “With so much uncertainty regarding property taxes, we have been talking to legislators about the issue.”
Last year, real property tax collections for Boardman totaled $80.01 million, nearly a quarter of the more than $329 million collected countywide, Mahoning County Treasurer Dan Yemma reported.
Vansuch said he and his fellow trustees will review the legislation but have not discussed incorporating Howland or imposing an income tax.
“Right now, the trustees and administration are focused on educating our residents and voters about the importance of the real property taxes to the township and its operations ahead of what we anticipate will be a vote this November to eliminate the primary source of income for the township,” he said. Interested township residents are being encouraged to participate in upcoming budget hearings in March.
Similarly, Moliterno said he and his colleagues have not yet discussed imposing an income tax.
“In the past we have seen cuts to estate taxes and local government taxes and others, so we must always be exploring options to ensure that we can operate essential services to Boardman residents,” he said.