WHAT SHOULD I BE DOING INSTEAD OF THIS?
 
November 28th, 2012 By German Lopez | News | Posted In: News, Budget, County Commission, Stadiums

Portune Suggests Sales Tax Hike

Quarter cent increase to stabilize stadium fund, preserve property tax rebate

toddportuneHamilton County Commissioner Todd Portune

County Commissioner Todd Portune is proposing a 0.25 percent sales tax hike to stabilize the stadium fund and preserve the property tax rebate promised to voters in 1996. The Hamilton County Board of Commissioners will have to approve the hike before it becomes law. It would raise the county sales tax from 6.5 percent to 6.75 percent.

Portune, the lone Democrat on the three-man board, says the county got to this point after years of problems with the stadium fund’s solvency culminated into one of two options: either the sales tax goes up or the property tax rebate is rolled back. He claims the two options are the only way to keep the stadium fund stable. 

Portune says the 0.25-percent increase on the sales tax will hurt low-income families less than rolling back the property tax rebate. He reasoned the impact of the property tax rollback would focus on Hamilton County residents, including low-income families, while any hike in the sales tax is spread out on anyone who spends money in Hamilton County, including visitors from around the Tristate area. He also pointed out that essentials like food and medicine are exempt from the sales tax, which gives some relief to anyone trying to make ends meet.

On support from other commissioners, Portune says Board President Greg Hartmann agreed either the rebate has to go or the sales tax has to go up, but Hartmann could not be reached by CityBeat for further comment. This story will be updated if comments become available.

Update (Nov.

29, 4:25 p.m.): Hartmann called CityBeat after this story was published. He says he has not made a final decision, but he echoed Portune's comments by saying the reality of the situation” demands choosing between a sales tax hike or property tax rollback. If the commissioners take the latter option, Hartmann says only a partial rollback will be necessary to draw enough funds. He also cautioned that any one-time sales and spending cuts will not be enough to stabilize the stadium fund in the long term.

Commissioner Chris Monzel says he would rather keep the stadium fund balanced for one year with short-term cuts, including a cut on further investments in The Banks development before raising taxes. After the year is up, Monzel says commissioners could see if revenue from the new Horseshoe Casino and a possible deal involving the University of Cincinnati using Paul Brown Stadium would be enough to sustain the stadium fund in the long term.

The property tax rebate and sales taxes are both generally considered regressive, meaning they favor the wealthy more than the poor. In simple terms, as income goes down, spending on goods and services take bigger bites out of a person’s income. A sales tax makes that disproportionate burden even larger.

One analysis from The Cincinnati Enquirer found the wealthy actually made more money from the property tax rebate than they were taxed by the half-cent sales tax raise that was initially meant to support the stadium fund.

For a previous story covering the stadium fund, Neil DeMause told CityBeat the stadium fund’s problems stem from the county government making a “terrible deal” with the Reds and Bengals. DeMause is a journalist who has chronicled his 15-year investigation of stadium deals in his book “Field of Schemes.”

 
 
 
 
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