The 2007-2009 economic recession resulted in an increase in the demand for social services and a decrease in tax collections at all levels of government. This strained government finances and forced both state and local governments to make cuts to services while carefully consider budgeting decisions. As local governments continue to adjust to reduced revenues it is important that we understand the factors that influence their revenue streams.

While cities and villages in Ohio receive funding from federal, state and county governments, it is necessary to impose a property tax and/or income tax to fund local services. The property tax may be particular appealing as it is relatively inelastic during economic downturns. The Ohio constitution requires cities and villages to take any levy that exceeds the ten-mill limitation to the ballot to be decided on by the voters. This research looks at local municipalities in Ohio and, through property tax levies placed on the ballot between 2006-2012, considers the communities’ use of property tax levies to fund public services.

Specifically the research examines two questions from a government perspective. 1) What do communities that frequently go to the ballot with a property tax levy have in common? 2) What characteristics do communities that do not pass a property tax levy have in common? Understanding these questions will help local governments to make better decisions regarding their revenue options.