Columbiana Co. stands to lose $9.4M in revenue

The state is eliminating a tax that goes to every subdivision.
By D.A. WILKINSON
VINDICATOR SALEM BUREAU
LISBON -- Local officials have learned they face the loss of $9.4 million in tax and federal revenue over the next few years.
Columbiana County Auditor Nancy Milliken has begun telling the county's political subdivisions that they will lose about $7.3 million a year in tangible personal property taxes.
She said Wednesday she will send a letter to subdivisions to explain the pending loss and will meet with officials if requested.
The county commissioners also learned the federal government may cut $2.1 million over four years that now goes to help collect child support.
Milliken said the state has decided to replace the tangible property tax collected on most businesses and telephone equipment.
That tax brought $7.3 million to the county in 2004. All county subdivisions get a share. The largest portions go to cities where industries are located, Milliken said.
The state will instead collect a new Commercial Activity Tax and keep it, she said.
To help subdivisions, the state will pay more than the tangible personal property tax brought in through 2010. After that, the state will begin steadily reducing payments until they end in 2018.
The state hasn't selected the formula it will use to reduce payments as the tax collections wind down.
Milliken said it will be up to subdivisions to eventually deal with the lost revenue.
Eileen Dray-Bardon, the director of the county's Department of Job and Family Services, told the commissioners she had just learned of proposed cuts in federal funding.
Considering cuts
Legislators were considering cutting federal payments to the child support program from 66 percent to 50 percent. The proposed legislation also would limit the use of other federal money.
Those two changes, said Dray-Bardon, would handicap the child-support collections that brought in $18.1 million in the county in 2004.
Commissioner Sean Logan said the federal government is trying to save money because of recent hurricane damage. The commissioners sent a letter to U.S. Rep. Ted Strickland of Lisbon, D-6th, protesting the federal cut.