Hilliard residents might pay an additional $5 at the Ohio Bureau of Motor Vehicles next year to register cars and trucks.

Correction: An ordinance for a new $5 permissive tax was introduced March 9 by Hilliard City Council, and it could be approved in a second reading March 23. Because of a reporter's error, a previously published version of this story online and in the March 19 edition of the ThisWeek Hilliard Northwest News incorrectly said the tax had been approved.

Hilliard residents might pay an additional $5 at the Ohio Bureau of Motor Vehicles next year to register cars and trucks.

Ohio law permits a taxing district to enact up to six $5 levies, for a total of $30 per vehicle registration, per year, said David Ball, director of communications for Hilliard.

Presently, Hilliard collects five such levies, for a total of $25 per vehicle registration, per year, Ball said.

On March 9, Hilliard City Council introduced an ordinance authorizing the city to collect the additional $5 permissive tax.

Council could approve it on a second reading at the March 23 meeting.

The Ohio General Assembly authorized the additional permissive tax via House Bill 62 in 2019, Ball said.

The additional $5 tax would be handled like other collected permissive taxes at the license bureau, Ball said.

“(The city) already receives $25 in these permissive taxes; this adds the final allowed permissive tax, bringing the total to $30,” Ball said.

The tax would start being collected Jan. 1.

The additional revenue, like that already collected, would be used to fund the planning, construction, improvement and maintenance and repairs of public streets in the city limits of Hilliard, Ball said.

The new $5 permissive tax is expected to generate about $50,000 per year, Ball said.

In 2019, 37,399 vehicles of one kind or another were registered by owners in the Hilliard taxing district, said Lindsey Bohrer, assistant communications director for the Ohio Department of Public Safety.

That total includes 30,565 passenger cars, 2,363 noncommercial trucks, 853 motorcycles, 768 trailers and 61 motorhomes.

Bohrer said her department estimates the new permissive tax will generate $158,000 per year.

Using 2019 as a baseline when 37,399 vehicles were registered – and subtracting 228 commercial trucks, which are exempt – the remaining 37,171 vehicles, at $5 per vehicle, generates $185,855, Bohrer said.

The Department of Public Safety applies a “reduction factor” of 85% to allow for partial-year registrations, for which the permissive tax is prorated.

After applying the reduction factor, the annual additional income is rounded up to $158,000, Bohrer said.

The reason for the discrepancy between the two estimates is unclear.

kcorvo@thisweeknews.com

@ThisWeekCorvo