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Estate-tax demise will add to Boardman financial woes

Published: Sun, July 3, 2011 @ 12:01 a.m.

By Ashley Luthern



The township has collected about $650,000 from state estate taxes this year, more than half of what it estimated it would receive in all of 2011.

But officials already are looking ahead to 2013 when there will be no estate tax.

The original estimate in the 2011 township budget for estate-tax revenue was $600,000, but the final township budget estimated it would be about $800,000, said Fiscal Officer William D. Leicht.

Gov. John Kasich signed the state’s budget Thursday, which included a provision to abolish the estate tax Jan. 1, 2013.

Rob Nichols, Kasich’s spokeman, said he “absolutely” stands by his earlier statements that the Ohio estate tax “is one of the most punitive taxes out there.”

“We’ve given local governments many tools to deal with shrinking state income,” Nichols said, citing the collective-bargaining law Senate Bill 5 and incentives to share services among local governments.

Township Administrator Jason Loree said SB 5 is “not a sure thing.” Last week, 1.3 million signatures were turned in on petitions calling for its repeal.

“That is not something that I would say is an accurate depiction of giving us a tool,” Loree said. “Boardman gets a large portion from the estate tax, and we have been for years, and it’s been used as a revenue source for operations, and it’s going away so quickly.”

He added that township employees already pay 15 percent or more of their health-care costs. SB 5 includes a provision for public employees to pay 15 percent of their health care.

“We’ve been working with our unions and shown them where we’re at financially,” Loree said.

Leicht said he anticipates the township will receive $300,000 to $400,000 in estate tax in the second half of the year. On average the township receives between $900,000 to $1.2 million in estate tax annually. The township’s total budget for 2011 is $17.1 million.

The estate-tax revenue is in the general fund for operations, Leicht said.

From 1995 to 2005, “that money was used to fund the growth in the township,” he added.

Loree said the loss of the estate tax and cuts in state funding to local governments is part of the reason trustees have placed a 3.85-mill, five-year additional police levy on the Aug. 2 ballot, which would maintain and bolster the police department.

The levy “will help us deal with some of the shortfalls,” he said.

The Ohio estate tax was established in 1893 and applies to estates valued at more than $338,333. The tax revenue is divided, with 20 percent going to the state and 80 percent to the township or municipality of residence at the time of death. In 2009, about 8,000 estates, or 7 percent, qualified for the tax, according to the Ohio Department of Taxation.

In 2010, the estate tax yielded $936,564 for Youngstown; $637,585 for Austintown; $400,000 for Canfield; $255,875 for Canfield; $128,000 for Poland Village; and $99,000 for Poland Township.


1UnionForever(1470 comments)posted 5 years ago

Cry me a river - cut the spending and quit complaining Boardman. The "estate death tax" should never have been created in the first place. You pay taxes all you life and have to pay taxes in death too?

Better to have you public employees pay 30% of their healthcare costs like those of us in the private sector do.

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2WarrenRicheyKid(169 comments)posted 5 years ago

"I like to pay taxes; with them I buy civilization." Oliver Wendell Holmes

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3Stan(9923 comments)posted 5 years ago

We must be more understanding of Youngstowns culture .


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4faith(200 comments)posted 5 years ago

Kasick is the worst. I can't believe that anyone would support this. The people being taxed are DEAD! You can not take it with you. And 93% of those that die don't have to worry about it. This governor is ruling like a dictator.

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5NoBS(2763 comments)posted 5 years ago

UnionForNever, boo-freekin'-hoo. I'll see your 30% you claim you pay and up you the dozens of people I know with private sector jobs who PAY ZERO PERCENT of their health care. And have darn good coverage, I have to add.

Sounds like you're in the wrong line of work.

Faith, the problem isn't the people who died, it's their heirs - their relatives who feel, right or wrong, that the money is theirs, not the government's. People pay tax on their money when they earn it. They pay tax on the interest when they put it in the bank. Taxing it again just because they died is double taxation.

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6faith(200 comments)posted 5 years ago

This tax only impacts around 7% of the population. The money has been used in communities since 1895. Now we are going to ask the other 93% of people to either pay more taxes or go without services. This is BS.

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7Ret(39 comments)posted 5 years ago

There is something a little sick about planning your city's operating budget around the death of your citizens.

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8Veleuk(18 comments)posted 5 years ago

"This tax only impacts around 7% of the population. Now we are going to ask the other 93% of people to either pay more taxes or go without services."

The issue is that this is also a tax on assets, not just cash. So if a farm or small business owner dies and has little cash, the heirs are forced to sell the business assets to cover the tax. So good bye business and taxes from said business.

The estate tax was always short sighted.

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9Stan(9923 comments)posted 5 years ago

"People pay tax on their money when they earn it. They pay tax on the interest when they put it in the bank. Taxing it again just because they died is double taxation. "

If the person wasn't productive there would be no estate and no issue . The liberal way is to heavily tax all productivity . I see fertile ground for a high local income tax in Boardman .


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10apollo(1227 comments)posted 5 years ago

The problem has been with Boardmans trustees not doing their job. Giving away every last dollar including over 40 million of inheritance taxes and building in a cost structure built upon revenue sources that were unstable. They saved zero for the rainy day which is now upon us. Thank the township unions for sucking the taxpayers dry and still wanting more. They are making at least 20% too much according to the audit and want the taxpayers to bend over and dig deeper so that the township employees can continue to feed from the golden trough. Poor NoBS thinks that people in the private sector have better health benefits than him. 15% is about as good as it gets. Plus the sweet pensions that not many of us outside the golden trough have.

The scare tactics have begun for the new levy. Anyone get the flyer for absentee ballot??? See my neighbors? As if somehow more money will make crime disappear!

Why would anyone give these clowns more money? CALEA money wasted. Substation money wasted. Money for the new water district wasted and Jason Loree didn't even attend the February meeting!!!

Anyone who votes yes simply is too stupid to see the reality. Crime is not rampant. The blotter on Vindy tells a completely different story than the levy supporters would have you believe. The fact is Boardman crime is mostly property crimes many of which are targeted to the retailers. There are few violent crimes here and fewer fires. Should we really be paying cops $90,000 a year average plus benefits and perks? Firemen $75,000 a year plus bennies and perks?

Vote no and send the message that they need to get their costs in line with revenues.

More taxes will just cause more empty houses and declining property values. As someone above stated, Youngstowns high taxes have done wonders for it.

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11Stan(9923 comments)posted 5 years ago

“We’ve given local governments many tools to deal with shrinking state income,” Nichols said, citing the collective-bargaining law Senate Bill 5 and incentives to share services among local governments.

Township Administrator Jason Loree said SB 5 is “not a sure thing.” Last week, 1.3 million signatures were turned in on petitions calling for its repeal."

The taxpayer will indeed be fleeced when SB 5 is repealed . Higher taxation for Boardman is inevitable .


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12Traveler(606 comments)posted 4 years, 12 months ago

I work for a smaller business probably worth about 3 or 4 mil 15 employees. Not much cash on hand all the money is tied up in assets of the company (warehouse, Trucks, Old machines we use for spare parts for customer that cant afford a new equipment). The owner is 68 his son pretty much runs the company if the owner die tomorrow i doubt that the company could pay the estate taxes with out selling off the old equipment we keep for spare parts and rentals. The equipment we need to keep everyone employed. Alot of our work is for customer that cant afford new equipment but can afford one of our old machines that we rebuild from spare parts out of our warhouse for them.

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13Traveler(606 comments)posted 4 years, 12 months ago

How many times should we pay taxes on money that we work to earn. Local, state, federal Income taxes. If go to a movie there is taxes stay home and buy a bottle of wine to have a nice dinner with your girl even more taxes. There is all kinds of sales taxes. Buy property have even more taxes on that when is enough enough.

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14300(573 comments)posted 4 years, 12 months ago

Traveler, if what you say is true about where you work, then their biggest problem isn't whether they'll get hit with an estate tax.

If their cash reserves are that low, you're only 1 bad quarter from being out of a job. I'd suggest some elementary finance courses for the owner and his son, since it appears to be simply mismanagement on their behalf.

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15Nunya(1356 comments)posted 4 years, 12 months ago

Oh those republican schemes,.. LMAO !!!

This measure was intended to facilitate hording of self serving inheritance and seizure. Where a handful will think they're overjoyed. Until they realize that it's going to plummet Boardman into a vast abandonment slum,..

Property values hinge upon collective value and upkeep. Which bounds off of and prospers by affordability. Which this new immunity plot. Will make residency and ownership not worth it for the greater majority. Because the elevated rates for residency taxes and services will become so elevated. When those that's paying now leaves. Those that's left will have to pick up the total load.

Which some areas in Boardman are relatively decent now. But they won't be for long when the vast abandonment occurs. What they'd assumed they'd keep in rare and infrequent estate taxes. Soon and very soon they're going to be paying in daily and annually expense. Just to remain in whats going to become a vastly depreciated area where they've rooted.

Boardman is on the operational expense ropes now. So one doesn't have to be a Nobel prize winning economist. Nor even a land and property investment guru to foresee that bad math conflict coming.

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16Nunya(1356 comments)posted 4 years, 12 months ago


It's also to note that the writer's angle is to pitch Boardman residents. To fall for voting in favor of that non supportable levy of fleecing the residents for public services. For which my position on that is still voting NO again. Would be in the residents best interest.

To include under the John Kasich, plot. Boardman isn't going to be the only local municipality, that's going to become a poor choice. As a non inhabitable poor investment locality to neither live nor run a business in.

The mark of such theft and deception is it leaves distinct remnants of destruction and dysfunction in it's wake,.. and Kasich's policies by plot are textbook epitomes of how it's done.

Although now Ohioan's are going to have to see it to believe it.

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17Millie(192 comments)posted 4 years, 11 months ago

The problems for all the communities with labor or budget problems is at the hands of those in charge who were more concerned with keeping the employees happy than making prudent financial decisions. We should be able to go after them for either being stupid(maybe that doesn't count) or lying to the taxpayers.

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