UNION — To address an issue of double taxation affecting some property owners in the city, Union City Council passed a resolution Monday declaring support of Ohio General Assembly House Bill 302.
House Bill 302 (HB 302) would prohibit municipal corporations or townships from levying taxes for fire, police and EMS services on Type II annexed territories if the municipality or township does not provide these services to the annexed area.
However, as a compromise measure HB 302 provides for a 5 year grace period for fire, police and EMS levies in place after a Type II annexation petition is approved in the future. Land already annexed under a Type II annexation would not be subject to the 5 year grace period.
More than 1,400 acres, including more than 200 separate parcels are currently subject to taxation for fire, police and EMS levies by both the City of Union and Butler Township.
“There is a hearing scheduled Tuesday morning in Columbus for opponents’ testimony. I am going to go over to hear what the Township Association has to say why it is a good thing to do double taxation,” said Union City Manager John Applegate. “Most of the communities in the state of Ohio are being asked if they are affected by dual taxation by annexation to adopt this resolution.”
Vice Mayor John Bruns questioned the resolution regarding the 5 year grace period.
“Does that mean after it is annexed they can continue to double tax for 5 years?” Bruns asked.
Applegate explained that existing annexations would not be affected by the 5 year grace period, only future Type II annexations.
“This was a compromise done in good faith to try to get this moved forward,” Applegate said.
Representatives Mike Henne and Jim Butler introduced HB 302 to the 131st Ohio General Assembly on August 17, 2015 due in part to the City of Union seeking Henne’s assistance in resolving the double taxation issue affecting its property owners. Passage of the resolution Monday represents city council’s belief that it is in the best interest of the citizens of Union for HB 302 to be passed.
In other business, city council authorized the sale of a 2 acre parcel of land located at 11386 Dog Leg Road because it is no longer needed for any municipal purpose at a price of $152,000.
Council also authorized Applegate to enter into an agreement for electric generation supply with a competitive electric service provider, Union is one of 26 municipalities participating in the Miami Valley Communications Council (MVCC) electric generation supply agreement with DPL Energy Resources, Inc. for the provision of electric generation and transmission supply services through December 31, 2016. In accordance with the Public Utilities Commission of Ohio rules and regulations, the participating municipalities have the opportunity to maximize savings on the generation and transmission portion of their electric service costs through the selection of a competitive service provider.