LUCAS — The Village of Lucas’ proposed 0.75% income tax has failed.

According to final unofficial results from the Richland County Board of Elections, 107 votes were for the additional income tax and 116 votes were against it.

The measure would have added a 0.75% income tax for general municipal operations, maintenance, new equipment, expanded municipal services and facilities and capital improvements.

“We understand that voters don’t want an additional tax, but these are dollars that are needed,” Mayor Todd Hall said. “We cannot continue to operate with the same revenue streams that we operate on today.”

What the income tax would mean for residents

Hall said the village placed the additional 0.75% income tax on the ballot to provide a tax credit for residents who live in Lucas but work in another municipality that also collects income tax.

Lucas residents who work in another municipality with an income tax would receive a 0.5% credit. Hall said the credit would have brought their total income tax rate to 1.25%.

The income tax applies to earned income for people who live and/or work in Lucas. It does not apply to Social Security, 401(k) accounts, child support, spousal support, SNAP benefits or military pay and benefits, Hall said.

He added the Village of Lucas is one of two municipalities in Richland County that does not currently have an income tax.

“It’s really something that probably should have been in place, you know, probably 30 years ago, to be honest with you,” he said. 

A separate 1% income tax

Regardless of Tuesday’s election results, Lucas will begin collecting a separate 1% income tax on Jan. 1, 2027.

Lucas Village Council approved the 1% income tax by a 6-0 vote in early July. Hall said Ohio law allows municipalities to impose up to 1% without voter approval.

Hall estimated the 1% income tax would generate roughly between $60,000 and $70,000 annually for the village.

“We know we have imposed the 1%, and that’s going to stay in place. But the additional three-quarters that we were asking for was the part of the tax that would contain the half-percent credit to the resident that lives in Luca,s but works in a municipality where there is an income tax,” he said.

Funding infrastructure improvements

Hall said the 1% income tax revenue would help fund infrastructure improvements throughout the village, including upgrades to the electric system, wastewater system, water treatment facility and streets.

The village has applied for $499,000 in grant funding for waterline upgrades. Hall said the Ohio Public Works Commission recently moved the request into its small government category because of the severity of the village’s need.

“It really kind of increases our chances of those grant dollars getting approved rather than us having to go up against, say, the City of Ontario, City of Shelby, City of Mansfield, where we would not get as much in grant dollars,” he said.

The waterline project represents the first phase of improvements to the village’s water system. Hall said Lucas will also need to develop a new water treatment facility because its current facility does not pump at the capacity required by the EPA.

Hall said the village relies primarily on revenue from water, wastewater and electric utility billings. Other revenue sources include $7,400 annually from Richland County’s permissive sales tax, state license plate fees and a small amount of property tax revenue.

“We have to have additional revenue streams to be able to make the necessary improvements that our Village needs and that our residents deserve.”

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