Obetz Safety Levy Facts (2025)

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Proposed 0.5% Income Tax Increase for Public Safety – Issue #19

Purpose of the Levy

The levy provides dedicated, long-term funding for the City’s Department of Safety, which includes:

  • Division of Police
  • Division of Building & Zoning
  • Division of Fire (contracted)

 

While the City Charter (§6.01) permits funding across all divisions, the 2025 levy proceeds will be used entirely for police services. Fire protection is provided by Hamilton and Madison Townships, and the building department is largely self-funding through permits and fees.

This levy supplements the 0.5% safety levy passed in 2013, which was intended to cover most police costs. That levy now covers only about 55% of total police expenses, with the gap continuing to grow and approaching $2 million a year.

Cost to Residents

The proposal increases Obetz’s income tax from 2.5% to 3.0%.

  • If you work in a 2.5% tax city (e.g., Columbus) and Obetz maintains the 100% credit, you will pay 0.5% to Obetz.
  • If you work in a non-taxing city, you will pay 3.0% to Obetz.
  • If you are retired and living on Social Security or pensions, you are not subject to this tax.

 

Annual Income Annual Cost Daily Cost (365 days)
$25,000 $125 $0.34
$40,000 $200 $0.55
$50,000 $250 $0.68
$75,000 $375 $1.03
$100,000 $500 $1.37

Why Not Eliminate the 100% Credit?

City Council could repeal the full credit by ordinance without a public vote, which would increase revenue immediately. However, doing so would:

  • Double-tax residents who already pay municipal income tax elsewhere
  • Require all residents to file annual tax returns
  • Function as a tax increase without voter approval

 

Instead, Council chose a voter-driven solution: a 0.5% increase dedicated solely to safety.

Comparison with Other Municipalities

Many nearby cities do not offer a full credit and instead raise revenue by partially or fully taxing residents on top of what they pay elsewhere. Examples include:

  • Ashville, Lithopolis, Harrisburg: 1.0% tax with 0% credit = 3.5% effective rate
  • Bexley: 2.5% tax with a 65% credit cap = 3.38% effective rate
  • Carroll: 0.75% tax with a 25% credit = 3.06% effective rate

 

Obetz at 3.0% with a full credit results in a lower effective tax burden for working residents, especially commuters.

Use of Levy Funds

The levy proceeds will be used exclusively to support the Division of Police, including:

  • Salaries and retention
  • Vehicle and equipment purchases
  • Body cameras, radios, and software
  • Mandated state training and certification
  • Investigations and patrol staffing

Previous Safety Levy

Obetz voters passed a 0.5% safety levy in 2013 to fund police services. Rising costs have more than doubled since then, making that funding insufficient. The 2025 levy is intended to update and strengthen public safety funding.

Exemptions from Municipal Income Tax

  • Social Security is not taxable under Ohio municipal income tax law.
  • Most pensions, military retirement, and investment income are also exempt.
  • Retired individuals not working will not be affected by this levy.

Sources of Income Tax Revenue

Applies to:

  • Wages
  • Net business or self-employment income
  • Pass-through income (LLCs, partnerships)

 

Does not apply to:

  • Social Security
  • Pensions
  • Interest, dividends, or capital gains

Why Additional Revenue is Needed

Police expenses are projected at $4.36 million in 2025, more than double 2016 levels. The 2013 levy now covers only 55% of these costs. Without additional revenue, the City cannot maintain current staffing, response times, or state compliance.

Consequences if the Levy Fails

Without the levy, the City would need to either reduce police staffing and services or divert funding from other programs, such as:

  • Youth sports
  • Obetz Athletic Club
  • Facility rentals
  • Splash pad and ice rink
  • Parks and recreation
  • Road paving
  • Senior lunches and transportation

Property Tax Revenues

Obetz receives about $500,000 per year from property taxes, roughly 2.5% of the General Fund budget. This revenue supports all City departments and is not sufficient to sustain police operations.

Potential Elimination of Property Taxes

If property taxes are reduced or eliminated, township-funded fire and EMS services could be impacted. Obetz may need to expand or internalize those services. Strengthening local income tax revenue now provides stability and independence.

Relation to Other Levies

In spring 2025, a Hamilton Township police levy was approved. This proposed 2025 levy is an Obetz levy for Obetz Police and ensures these tax dollars remain in Obetz, supporting the City’s police department.