Permissive Taxes….”piggybacking” at its finest

piggybacking image

File this one under “the older I get the less I know”…..while doing research on some interesting Countywide issues we came across the phrase ‘permissive tax’.  Since we were unclear exactly what that means, we thought we should find out exactly.

 

Premissive Taxes hdbkchap017-2011

Here is an excerpt from the County Commissioners’ Handbook:

“In 1967 the General Assembly granted counties the authority to enact four permissive
taxes: the sales and use, real estate transfer, motor vehicle registration, and utility
service taxes. This grant of authority significantly changed how counties could fund
county programs and services.

The law, as enacted, provided that county commissioners could enact the taxes by
resolution, subject to a voter initiated referendum by residents. All of the taxes, with the
exception of the motor vehicle registration tax, were to be used for county general fund
purposes and for the administration of the tax. The motor vehicle registration tax was to
be used solely for highway related purposes. These permissive taxes are popularly
referred to as “piggyback taxes”, as they are enacted locally on top of statewide taxes enacted by the General Assembly.”

So the State of Ohio conveyed the ability to tax the local residents with a similar tax.

We bet “piggybacking” will have a whole new meaning to you now.

 



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