COLUMBIANA COUNTY Commissioners set hearings to discuss sales tax increase

Commissioners have the option of imposing a higher sales tax.
By NORMAN LEIGH
VINDICATOR SALEM BUREAU
LISBON -- Columbiana County commissioners are considering a 0.5 percent sales tax increase to breathe life into the county government's finances.
Commissioners agreed Wednesday to set two public hearings for input on a higher sales tax. Right now, the sales tax is at 1 percent. It would rise to 1.5 percent if an increase is adopted.
The public hearings are set for the commissioners meeting room at 9 a.m. Dec. 24 and 10 a.m. Dec. 27.
After the hearings, commissioners will decide whether to seek a higher sales tax and how to go about it.
Among the options commissioners have would be to impose a 0.5 percent increase or to ask voters to approve it in the May primary election.
If the tax is imposed, voters could mount a referendum effort to scrap the measure.
Reason for tax: Commissioners said the tax increase is necessary if the county is to be able to adequately fund its departments next year.
"We cannot live without more income," Commissioner Jim Hoppel said.
Commissioner Sean Logan said the county is in "dire financial straits."
Without a tax increase, county revenues next year are expected to be about $12.7 million. But departmental budget requests and other obligations require the county to spent about $16.7 million, a nearly $4 million deficit, commissioners said.
Even if a 0.5 percent sales tax increase were adopted, the county would still be short because it would bring in only about $3 million annually. Commissioners said they would try to find a way to cover that deficit.
Limit: They noted that 1.5 percent is the maximum sales tax a county can have on its books.
The 1 percent sales tax currently in place was adopted by voters in November 2000 as the county faced being placed on fiscal emergency status by the state. The tax expires in 2005.
In exchange for voters' adopting the November 2000 tax, commissioners agreed to annually give back about $2.5 million in property tax revenue.
Since 1977, a sales tax measure has been on the ballot 14 times, passing three times.