In June, Westerville City Council approved legislation to bring before the voters of Westerville a renewal of a permanent continuance of the quarter percent (0.25%) income tax dedicated to the community parks system, including parks, green spaces and facilities.
Listed below are a few commonly asked questions associated with the issue. A full set of questions and answers, as well as details on the Parks, Recreation and Open Spaces Master Plan and the proposed renewal issue, are available online at www.westerville.org/parks.
What is the quarter percent tax issue the City of Westerville is proposing?
Anyone who pays income tax in the City of Westerville, regardless of residency, contributes to a quarter percent (0.25%) income tax deduction that is dedicated to the community parks system, including parks, green spaces and facilities. This has been in place since 1998, when voters approved the Parks, Recreation and Open Spaces (PROS) Master Plan to fund the development, maintenance and operations of the Westerville parks and recreation system.
This issue seeks a renewal of the 0.25% income tax on a continuous basis so that capital investments and financial planning can occur now for projects designated in the newly adopted PROS Master Plan. For details, read the plan online at www.westerville.org/masterplan.
Why is the City asking now if the quarter percent income tax doesn’t expire for another six years?
The dedicated 0.25% income tax is set to expire in only six years, on Dec. 31, 2020. As we near 2020, the City’s ability to plan for, finance and secure grants and other funding for capital improvements (building expansions, new facilities) needs to occur years in advance. A traditional capital planning timeline is two to three years. From that point, long-term financing, which typically runs about 20 years, must be secured. So the planning we are doing now extends beyond 2020.
The City’s ability to begin a major capital project, like any of those identified in the PROS Master Plan, is limited without a dedicated funding source. If the existing 0.25% income tax expires, these projects would remain unfunded. The consequence of this would be the City’s inability to meet community needs as identified by residents in the updated PROS Master Plan.
Residents continually express their support for the quality of life they experience in Westerville via the parks and recreation system and its services. This is a strong value of our community, and the planning required now for future generations is at the core of this levy renewal request.
Why is the City seeking to renew the dedicated quarter percent income tax on a continuing or “permanent” basis?
Simply put, parks are forever. The investment made from the initial 0.25% tax levy – in terms of new parks, the Community Center, Highlands Park Aquatic Center, path systems and more – will need to be maintained or improved over the decades. These parks and related recreational assets will be the City’s responsibility to maintain perpetually, so the funding source to do so must likewise be perpetual.
Because of this, a continuous tax best positions Westerville to continue long-term planning to meet our current and future needs as identified in the PROS Master Plan. A continuous dedicated funding source has been identified as the most effective strategy to maintain and grow our nationally recognized parks system for the future generation.
This dedicated funding is critical in supporting the high quality of life the Westerville community has come to know and expect from its parks and recreation services.
How much will this cost me?
Actually, there are no additional costs associated with this request. It’s important to know this is not a new tax or a tax increase. It is a renewal of an existing 0.25% income tax already paid by Westerville residents and those who work in the Westerville community.
I live in Westerville but work in another city. How much will this cost me?
Your tax liability will not increase. In Ohio, municipal income taxes are paid principally to the community in which you work, with your resident community typically providing a full credit for taxes paid elsewhere, as is the case in Westerville. Your taxes would likely only change if the community in which you work changes its tax rate.
It is also important to know that if the 0.25% income tax is not renewed by Westerville voters, your tax rate will not likely decrease. Most major suburban communities in central Ohio have a 2.0% income tax rate or higher, so even if the tax issue were not approved by voters, your tax rate would not likely decrease. This 0.25% portion will continue to be applied to the income tax you pay to the city in which you work.
I’m retired and have only pension and interest on savings or certifications of deposits (CD). Will these be taxed?
No. If you do not have earned income (excluding Social Security, pension, annuities, etc.), you do not pay this tax.
What will happen if the dedicated quarter percent income tax renewal for parks and recreation services does not pass?
If the income tax issue fails, the need for park improvements and expanded facilities and programs to meet the needs of our growing population will not disappear. But the vast majority of projects recommended in the PROS Master Plan and/or any new projects will not be developed. The community’s facilities and parks will remain as they are now, missing many opportunities to preserve open space and expand facilities for future generations.
