Leetonia police vehicles are parked in front of the village’s K-12 school building as two officers attend the district’s PBIS Holiday Rewind assembly Thursday morning for high school students. Friday was the district’s last day of classes before holiday break. (Photo by Stephanie Ujhelyi)

LEETONIA — The village of Leetonia is taking a proactive approach to their funding just in case voters statewide eliminate property taxes in 2026.

Around the state, municipalities collect almost $25 billion for their essential local services, such as police, fire and EMS.

Leetonia collects $140,669.19 annually, with the bulk of it ($69,769.34) being directed into its general fund.

Village officials are looking to replace their property taxes with revenue potentially generated by increasing their income tax a half (0.5) percent, to 2 percent.

This would allow them to continue the funding of police, which accounts for 81 percent (or $308,649); fire and EMS equipment at 11 percent ($43,240.25); fire fund 4 percent ($18,265.11) and police pension 2 percent ($9394.46).

Mayor Kevin Siembida said this also proposed creation of a separate fund for payment of police, while currently that comes out of the General Fund.

Any remaining funds will be a marked to the General Fund for municipal operations, capital improvements, facilities, maintenance and economic development.

According to village fiscal officer Nick Mistovich, Leetonia council has already approved the first two readings of the proposed income tax increase, which is expected to be on the May primary ballot. Collection would begin Jan. 1, 2027, if approved by voters.

As an income tax, it would only be collectible on earned income, meaning Social Security and disability benefits will not be taxed.

Other exemptions include military pay, compensation to juveniles, providers of personal service on the village for 12 days or less.

Non-residents who work within the village limits will be taxed.

The village contracts with the Regional Income Tax Authority for its tax collection, so they inquired how much money maybe collected in the extra half percent income tax if enacted.

Per Claudia Cloates, who is their assigned government liaison, she estimated that they could bring in an extra $36,079 with the 2 percent income tax scenario compared to the current property tax situation

Roman Ferry, assistant village administrator for the village of Leetonia, wanted to assure residents that if they pass the income tax increase and then the state effort to abolish property tax goes down at the polls, village officials still plan to not collect the property tax and abolish theirs.

“We have no plans to double dip,” Ferry said, adding the council is adamant about being transparent with voters.

If for some reason, voters reject the income tax increase in May, officials would have another chance to get it passed in November.

However, Mistovich and Ferry think this actually may be a fairer tax option as it doesn’t impact retired folks.

The third reading of ordinance 25-2885, better known as the proposed half percent income tax increase, will be during their initial January meeting.

sujhelyi@mojonews.com