Part of Reynoldsburg could have highest sales tax in Ohio come January if COTA levy passes

The bus stop on Hanson Street in Reynoldsburg doesn’t look like much: the sign for the number 2 bus is a few feet away from where the sidewalk ends.

But this Central Ohio Transit Authority bus stop and one other stop in front of the Victoria’s Secret distribution center in a small part of Reynoldsburg that extends into Licking County are in the COTA service area — and tax district.

And because of overlapping tax districts, this sliver could be subject to Ohio's highest sales tax rate next year if voters approve COTA’s LinkUS ballot measure on the Nov. 5 ballot. If the levy is successful, the sales tax in this tiny area would rise from 7.75% to 8.25% — a quarter of a percent more than anywhere else in the state.

And Columbus and Franklin County would be tied for second highest with Cuyahoga County and Cleveland at 8%.

COTA is seeking a permanent half-percent (0.50%) sales tax increase to fund the creation of bus rapid transit lines, more bus service and the construction of sidewalks and bike paths . A proposed rapid bus line along East Main Street/U.S. 40 would stop in the Licking County part of Reynoldsburg and include a park-and-ride lot.

Who would this impact?

The 8.25% rate would only affect shoppers at a handful of businesses: a Kroger, CVS and a Sheetz on Main Street, and a Dollar General and Circle K on East Broad Street.

Reynoldsburg Mayor Joe Begeny estimates that between 8,000 and 12,000 people, including his family, live on the Licking County side of Reynoldsburg. Those residents would pay 8.25% in sales tax on online purchases and, where sales tax hurts the most, on vehicles. Vehicle sales are taxed in Ohio based on where the buyer lives, not the dealership location.

“It’s not fair,” said Jerry Spence, who lives in the part of Reynoldsburg in Licking County. “You’re isolating a small neighborhood because they have two bus stops that are very rarely used based on my observations.”

Spence said he’ll vote against the levy in November.

Spence's neighbor, Emily Albrecht-Bryan, also was not thrilled to hear she could soon pay more in sales tax. But Albrecht-Bryan, a Columbus City Schools teacher, said she’ll likely vote for the levy because she thinks buses are an important service for many.

“I teach in an area where there’s a lot of people without driver’s licenses for many different reasons, and I think the COTA buses are important to them,” she said. “And if we want to be a major city, then we need good public transportation. Do I want to pay more for it? Of course not. I don’t use it. But will I pay more for it? Probably, because as a citizen we’re looking at the good of the whole, not just my own good.”

Begeny said he didn't realize part of Reynoldsburg could be subject to an 8.25% tax if the COTA levy passes. Begeny said he supports the levy because he believes it will be helpful for job creation and provide opportunities for Reynoldsburg residents to access Columbus and beyond.

Why part of Reynoldsburg could see an 8.25% sales tax

The state imposes a 5.75% sales tax on most sales and services. Counties and transit authorities can levy their own sales taxes, which means total sales tax rates vary across the state.

The COTA service area, and thus the area it taxes, is made up mostly of Franklin County but also parts of the cities of Columbus, Dublin, Westerville and Reynoldsburg that are located in adjacent counties.

Licking County has a 1.5% sales tax, while Franklin County has a 1.25% sales tax.

Asked if it's fair a small area would be subject to an 8.25% sales tax, COTA President and CEO Monica Tellez-Fowler said it's difficult for her to compare because she's lived in places where sales taxes are higher to support public transportation, including the Dallas/Fort Worth area and Vancouver, Washington.

"I'm sure that comes across and sounds like a lot, but people have to remember we're a small part of that," Patrick Harris, COTA vice president of external relations, said of COTA's 1% portion of the 8.25% sales tax.

jlaird@dispatch.com

@LairdWrite

This article originally appeared on The Columbus Dispatch: Part of Reynoldsburg could have highest sales tax in Ohio come January if COTA levy passes