By Theresa Garee
Messenger Editor

The Obetz Safety Levy is a proposed 0.5 percent municipal income tax levy on voter’s November ballot.

If approved the municipal income tax rate would increase from 2.5 percent to 3.0 percent.

In 2022, Rod Davisson, the city administrator for Obetz said to the Messenger, “If you’re raising income taxes, you shoot yourself in the foot,” said Davisson. “We’re at 2.5 percent. Everybody around us pays 2.5 percent. If we go to 3 percent, you start to risk losing businesses. And if you lose businesses, you lose income, and that can become a downward spiral.”

Today, Davisson admits that the underlying economic concern still exists however, many changes have lead to the city’s need for the levy to be necessary.

Davisson lays out four specific reasons:

1. Police Costs Have Spiked

The unionization of our police department significantly increased salaries, benefits, and operating costs. What used to be affordable with our original 2013 levy is now underfunded by over $2 million a year.

2. Revenue Growth Has Stalled

Obetz is nearly built out. We don’t have much new land available for large industrial or e-commerce users—the types that drove our revenue growth over the last decade. At the same time, automation is reducing taxable payrolls, even in thriving businesses.

3. State Tax Policy Changed

The State of Ohio’s new net operating loss (NOL) carryforward provision has led to over $3 million in unpredictable corporate tax refunds since 2021. These hit our budget unexpectedly and make financial planning difficult.

4. Council Prioritized Voter Input Over Repealing Credits

Council could have legally eliminated the 100 percent tax credit for residents who work in cities like Columbus, which would have raised more revenue without a vote. But they chose to protect that credit and instead ask the voters directly for a 0.5 perfect increase to fund police services.

According to documentation made available at the Vote Obetz/ Obetz Historians Meet and Greet on Oct. 9, the city states the levy increase monies would be solely dedicated to public safety, “including police services, emergency response, training, and equipment.”

The documentation cites the need for the levy due to the Obetz population growth and that the last levy was passed in November of 2013.

“When voters approved the 0.5 percent safety levy in 2013, it funded more than 75 percent of the Obetz Police Department’s budget. But over the last decade, multiple factors have eroded its effectiveness. Police salaries, benefits, vehicles, and equipment have all increased substantially due to inflation—especially during the COVID era. Unionization of the department has also added new compensation obligations. At the same time, demand for service has grown due to population increases, and recruitment challenges have made staffing more expensive as fewer people enter the profession,” Mayor Angela Kirk said.

Neighboring municipalities Groveport and Canal Winchester have a 2 percent income tax rate. Groveport has their own police department however, Canal Winchester does not. Both Groveport and Canal Winchester are also served by the Madison Township Police Department.

Currently Obetz residents who work in another city and pay income tax there receive a credit toward their Obetz tax liability. So if a resident works in a city that has the same tax rate as Obetz, they do not pay any income tax to Obetz. However, if they work in a city that has a lower tax rate than Obetz, they pay the difference to Obetz. Currently there are only two municipalities with a 3 percent income tax, Bedford, Ohio and Parma Heights, Ohio.

According to documentation at the Meet and Greet, the Obetz City Council has the authority to change or eliminate the tax credit at any time by ordinance.

“Under Ohio law, City Council has the authority to eliminate or reduce the tax credit for residents who pay income tax to another municipality. Doing so could bring in millions in additional revenue without a vote. However, Council chose not to pursue that option at this time. Instead, they placed a 0.5 percent safety levy on the ballot so that residents have a voice in the decision. The current 100 percent credit remains in place, meaning that residents who work in other cities—like Columbus, Groveport, or Canal Winchester (each with a 2.5 percent tax)—would only pay the 0.5 percent difference if the levy passes,” Kirk said.

“The quote from 2022 warned against reckless or general tax hikes that would drive away employers. This is different. This is a narrowly tailored, voter-approved levy dedicated to public safety. It helps preserve core services, avoids cutting youth and senior programs, and protects Obetz from long-term structural deficits—all while still honoring the full income tax credit for residents who work elsewhere,” Davisson said.