Wayne County considers shift from property to sales tax

The Wayne County Commissioners are exploring a proposal to eliminate the county’s inside millage — the automatic property tax levy under Ohio’s constitutional 10‑mill cap — and offset that revenue reduction with a 0.45% increase in county sales and use tax.

“We have been listening to Ohio legislators’ along with property owners’ concerns about property tax, and we are exploring a revenue model that leverages consumer purchases over placing the tax burden on home and property owners while maintaining essential services to our residents,” Commissioner Jonathan Hofstetter said.

The 73 Wayne County property tax districts fund the following:

—County: general operations, children and adult protective services, mental health, Veterans Service Commission, Medway, Wayne County Board of Developmental Disabilities, and Wayne County Care Center.

—Schools: local school districts, vocational and technical education.

—Townships and municipalities: roads, police and fire.

—Special districts: libraries, fire districts, mental health and parks.

How property tax is calculated

—Appraised market value: determined by the Wayne County Auditor using six‑year reappraisal cycles that compare sales data and market indicators.

—Taxable assessed value: Ohio law mandates this at precisely 35% of the appraised market value. A $200,000 home would be taxed on $70,000, not $200,000.

—Millage rates: Each taxable dollar is taxed per “mills,” where one mill generates $1 per $1,000 of assessed value. For example, at a rate of 2.0 mills (the current Wayne County rate), a $200,000 home with an assessed value of $70,000 would owe $70 × 2.0 annually to the county or approximately $140 per year.

Two types of millages explained

—Inside millage: enacted by the Ohio Legislature to include up to 10 mills of property tax shared among local jurisdictions (county, schools, municipalities). Inside millage is continuous and does not need renewed.

—Outside millage: any millage above 10 mills. It requires voter-approved levies for specific purposes such as schools, fire districts or infrastructure. Voters inside the 73 districts of Wayne County have the opportunity to decide the services and the amount of funding for those services.

Sales tax

Ohio keeps 5.75% of the county’s current sales tax of 6.5%.

Why the commissioners are acting now

Home and property values have experienced significant inflation over the past five years, resulting in increased tax burdens.

“We want to gather input from residents about this issue,” Commissioner Matt Martin said. “This measure would shift funding on essential services from homeowners to consumers. While homeowners may see lower property tax bills, shoppers would see a 0.45% increase when they purchase goods and services. The outcome hinges on community feedback, economic modeling and balancing funding needs. The commissioners are researching the pros and cons of the switch, if the county moves away from property tax.”

Next steps

The commissioners are holding two public hearings to discuss the proposed resolution to eliminate Wayne County’s 2.0 inside mills and increase sales and use tax, shifting from property tax to sales and use tax. The rate would increase from 6.5% to 6.95%.

For hearing information visit www.wayneohio.org.

Dan Starcher is the public communications coordinator for Wayne County.