What is the May 5 ballot issue?
The City of Avon Lake is proposing a 0.4% municipal income tax increase on the May 5, 2026, ballot. If approved, the municipal income tax rate would change from 1.5% to 1.9%. The
proposal applies to earned income only and is estimated to generate approximately $6.6 million annually for roads and capital improvements.
What will this cost me?
For a household earning $100,000 in taxable wages, the proposed increase would equal approximately $400 per year, or $33 per month. This income tax would apply to earned wages and does not apply to Social Security, pensions, or annuities. Visit the Avon Lake website for information on how to calculate the impact of the proposed income tax increase.
What happens if this passes?
Your property tax will decrease. The City will eliminate the 1.5-mill operating property tax for ALL residents. Revenue from the proposed income tax increase would fund road improvements, stormwater projects, capital equipment, and capital-related debt, with a primary focus on road projects and other long-term capital needs.
Why now?
The cost of road repairs continues to rise, year after year. Replacement of just one mile of road cost approximately $4.1 million in 2025. To fix our roads, manage stormwater, and maintain our services effectively, we need to align our revenue with today’s costs.
Why does the city need these funds?
The City of Avon Lake’s 1.5% municipal income tax rate has remained unchanged since 1992, despite over 30 years of growth and rising demand for services. As the second-fastest growing
community in Lorain County, the City faces increased costs for aging infrastructure and road repairs.
How has the City reduced costs?
To manage costs and limit the need for new revenue, the City has:
- Reduced operating budgets
- Limited overtime spending
- Initiated steps to reduce healthcare costs
- Pursued grants and other external funding sources
How long will this tax be in place?
For five (5) years, through 2031.
I work outside Avon Lake. Will the tax credit change?
The current income tax credit of up to 1.5% will remain in place for residents who work and pay taxes in other communities. If the proposed income tax increase is approved, the additional 0.4% tax would apply to earned income for all residents, regardless of where they work.
If we stop collecting property tax, won't there be less money in the general fund?
By setting aside specific funds for roads and capital projects, we can rely less on the general fund to cover these costs. After accounting for reduced property taxes, the income tax will bring in $5.5 million in net revenue.
I am on a fixed income. How does this affect me?
Under Ohio law, municipal income tax is on earned wages. It does not tax Social Security, pensions, or interest. This proposal is focused on wage-earners contributing to the infrastructure we all use. If the proposal passes, the City will eliminate the 1.5-mill operating property tax.
Why are you, the schools, and the library asking for money at the same time?
The City, schools, and library are separate public entities and operate on independent budgets. Each makes funding decisions based on its own financial needs and timelines.
For the City, demand for services has increased, while the cost of road repairs has risen over time, creating a need for dedicated funding to maintain aging roads and other long-term capital needs. The City’s municipal income tax rate has remained at 1.5% since 1992.
What if I can only afford to support one?
We respect that every family has a budget. The City's request is an earnings-based tax that would support the aging infrastructure of the community. For many retirees, this tax costs $0 but maintains their home value.