If the income tax is repealed, Superintendent Bob Fischer said the district will lose approximately $3.7 million in annual revenue based on the five-year forecast.
“The Board of Education would need to review all expenditures and make significant budget adjustments to maintain financial stability. This could include evaluating staffing levels, academic and extracurricular programs and other operational expenses to determine where reductions would be necessary,” he said.
Losing the income tax also could lead to the consideration of a request to voters for new or replacement funding within the next year to year-and-a-half, depending on budgetary needs and state funding levels, Fischer said.
Retiree Terri Haddix spearheaded the repeal effort. Instead of going door to door to collect signatures, she created a Facebook page to announce where and when she would be, which was most often at Roscoe Roof Park.
“I started it because I don’t think it’s a fair tax. I don’t think the school system needs it, and I think that if they do need money in the future there is a better way to get it,” Haddix said. “I would support a property tax levy.”
As an Ohio Department of Transportation retiree, Haddix collects a pension from the Public Employees Retirement System, which is subject to the income tax, unlike Social Security. Also, the income tax could cost some families more than they would have paid toward a property tax collecting the same amount, she said.
Income tax and property tax collections are not an apples-to-apples comparison because they are structured differently, Fischer said.
“An income tax is based on what a person earns, while a property tax is based on the value of their home. Depending on a homeowner’s income and property value, one could cost more or less than the other,” he said. “What’s important is that both are tools allowed under Ohio law to fund schools, and each community decides which approach best meets its needs and values.”
The traditional school district income tax uses the same income base as the state of Ohio’s income tax, according to the Ohio Department of Taxation’s guide to school district income tax.
Taxable income includes wages, salaries, tips, interest, dividends, unemployment compensation, self-employment, taxable scholarships and fellowships, pensions, annuities, IRA distributions, capital gains, state and local bond interest (except that paid by Ohio governments), federal bond interest subject to state tax, alimony, and all other sources.
Income not taxed includes Social Security benefits; disability and survivor benefits; railroad retirement benefits; welfare benefits; child support; property received as a gift, bequest or inheritance; and workers’ compensation benefits.
To place the repeal on the ballot, 370 signatures were required, according to the Warren County Board of Elections.
That figure was based on 10% of votes cast by Carlisle district residents in Warren and Montgomery counties in the most recent gubernatorial election.
Haddix submitted more than 450 signatures, and 400 were verified, the elections board said.
“My big message to everyone is I got this on the ballot. If the citizens of Carlisle decide they want to keep this income tax, I will accept that and continue to pay it. I won’t like it. I don’t think it’s fair, but I’ll continue to pay it.
“But I encourage anyone who is not sure about this, or even has a strong opinion either way — educate yourself," she said.
About the Author
