Miami Township is considering implementing a $5 motor vehicle license tax to generate additional revenue for roadway maintenance. The township will hold two public hearings before the board of trustees votes on this proposal. These hearings are scheduled for 5 p.m. on Thursday, May 28, and 6 p.m. on Tuesday, June 2, at 2700 Lyons Rd.
Funding Roadway Maintenance
If approved, the tax would commence on January 1, 2027, and continue annually. It is intended as a permanent measure unless the township decides to revoke it in the future, although such a decision is not currently anticipated, according to a township spokesperson.
The township’s statement highlights the increasing costs of materials, equipment, and supplies needed to construct and maintain roadways and storm sewers. The proposed $5 annual tax aims to cover these rising costs and help maintain and resurface the roadway network within each road’s estimated 20- to 30-year lifespan.
Legal and Financial Considerations
Under state law, the funds from this tax are restricted to roadway-related uses. This includes not only roads but also traffic-related infrastructure such as traffic signs, signals, and culverts. The tax would be collected through vehicle registrations via the Ohio Bureau of Motor Vehicles and apply to all registrations made or renewed within Miami Township.
Importantly, this tax does not require voter approval. Instead, it needs the board of trustees’ approval through a resolution following the public hearings.
Community Impact
Miami Township, the 16th largest township in Ohio, has over 52,000 residents according to the 2020 census. The township encompasses significant commercial areas such as the Dayton Mall, Austin Landing, Dayton Children’s South Campus, and the former LexisNexis campus, now known as “the Pike.”
Ohio law generally prohibits townships from levying income or local sales taxes, meaning they primarily rely on property taxes for funding. This proposed vehicle license tax represents an effort to diversify and stabilize funding sources for essential infrastructure maintenance.
Original reporting: Dayton Daily News — read the source article.