Beavercreek drivers to pay tax increase for street work

Next year, Beavercreek drivers will pay a $5 increase when registering or renewing their motor vehicle licenses.

City council this week approved the $5 tax increase to be applied to registration fees beginning January 1, 2021. Beavercreek Financial Administrative Director Bill Kucerak said it’s estimated the new tax will raise $220,000 annually for repairs and maintenance to the city’s public streets.

In April 2019, House Bill 62 was enacted for the 2020 -2021 Ohio Transportation Budget. The bill included a provision allowing municipalities to levy a new $5 permissive tax on the registration of all motor vehicles, with 100% of that registration tax going directly to the city.

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The tax will apply for each individual motor vehicle being registered — including RVs, motorcycles and licenses for company trucks with a Beavercreek address.

Oakwood passed its own $5 tax increase last year after HB 62 was passed.

The last time Beavercreek approved a $5 permissive tax for the city was in 1987.

“Think about this, 1987 there was no Fairfield Commons mall, I-675 had just opened part of the section up — I mean you’re talking a very, very different Beavercreek as far as infrastructure,” said Pete Landrum, Beavercreek city manager. “It’s road needs, it’s population, it’s everything. So to not have an increase since 1987 is, it’s a long time ago.”

In addition to the $5 tax on the annual renewal of licenses Beavercreek residents began paying in 1987, Greene County currently imposes a $20 annual, county-wide permissive tax. The county tax was implemented between 1986 and 1991.

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According to a city report, the funds generated from these original taxes have remained relatively the same, over the past 29 years, while paving costs have significantly increased.

“I think it’s badly needed, your honor,” said Beavercreek council member Charles Curran to Mayor Stone. “We’re always constantly challenged with the needs of road improvement and keeping neighborhoods looking nice. I think this is just an additional tool for us to try to make up for a lot of areas that really need it.”

Ohio drivers now pay 10.5 cents more per gallon in state gasoline taxes as a result of HB 62 passing last year.