Archbold, OH

ADAMhs Board Seeking Replacement Tax Levy

The Four County Board of Alcohol, Drug Addictions, and Mental Health Services (ADAMhs) will ask voters of Fulton, Defiance, Henry, and Williams counties to approve a replacement property tax levy that will raise more than $600,000 in additional money.

Les McCaslin, chief executive officer of the board, said the board will need additional funds because of the loss of revenue from the personal property tax, and because of the potential loss of some state funding.

The board took the action at the Thursday, June 12 meeting.

If approved by voters in the Nov. 4 general election, the replacement levy is expected to generate $2.125 million a year, raising about $686,000 more than the current levy.

Originally Passed

Voter across originally approved the seven-tenths (.7) of a mill property tax levy in 1989. It has been renewed every five years.

Under Ohio law, revenue received from a property tax levy is not allowed to increase as property values rise over time. If a property has a value of $100,000 when the levy was first passed, it will still be assessed at that same level, even if the property values increases.

However, if a property is improved, i.e., a new home is built on a lot, after the levy passes, it will be assessed at its current value.

Only new construction can increase the revenue from a property tax levy.

Based on current property values, the original seventenths (.7) of a mill is generating the amount a new thirtyseven one-hundredths (.37) of a mill levy would generate. This figure is known as the effective millage.

If the board had asked to renew the levy, it would continue to be collected at the effective rate. By replacing the levy, the ADAMhs board “resets” the levy to current property values.

For the owner of a $100,000 home, the replacement levy will drive taxes up from $11.37 to $21.44 per year.


The additional money is needed to offset the anticipated loss of revenue from two areas.

First, the state legislature has passed actions to eliminate the personal property tax on business equipment and inventory. ADAMhs board officials estimate the board will lose $562,000 over two years as the result of that decision.

Second, state officials are developing a new funding formula for mental health boards.

“Although no final plan has been announced, early proposals indicate the state plans to redistribute existing funds by taking money from board areas like our own, that are financially stable, and giving it to board areas that are struggling,” Mc- Caslin said in the press release.

Last year, state funding accounted for almost 45%, or $5.18 million, of the Four County board’s total revenue.

“I expect the additional money generated by the replacement issue will be needed to offset what we will lose in state funding,” McCaslin said.


State officials plan to have the new formula in place by July 1, 2009.

If voters approve the levy, it will be applied to tax year 2009, payable 2010, which is about six months after state funding cuts are expected to take place.

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