PORTSMOUTH — Portsmouth City Council is being requested to authorize and direct the preparation of legislation in the form of a resolution to request the Scioto County Auditor to certify to the city of Portsmouth the total current property tax valuation of the city of Portsmouth, along with the estimated property tax revenue that would be generated by the renewal or replacement of it’s one mill flood defense system levy.
In his preparation for the request, Portsmouth City Manager Derek K. Allen said, “In order to continue the operation of the city’s flood defense system, there needs to be placed on the November 2016 general election ballot a renewal or replacement of the one mill levy for the city of Portsmouth flood defense system.”
The Daily Times reached out to Allen for an explanation of the difference between renewal and replacement, but there was no response.
According to internet sources, replacement and renewal levies both are property taxes that individual and corporate taxpayers pay to their local authorities annually. However, while a renewal levy generally is predictable because it tends to stay the same across a period of time, replacement levies are distinct because they replace the effective tax rate.
While a renewal levy remains constant over the specific period of time that the voters approved it for regardless of any developments in the local jurisdiction, a replacement levy is based on current property valuations and new construction, according to the sources.
Wastewater Director Rick Duncan did tell the Times the city renews the levy every five years and it has to be on the ballot in order for it to be renewed.
“It’s for the flood defense system for maintaining the levee, maintaining the pumps in the pump stations, paying for electricity, paying the salaries of the men that maintain the pumps and the levee,” Duncan said. “Mowing equipment … anything that has to do with the levee or the pump stations.”
Reach Frank Lewis at 740-353-3101, ext. 1928, or on Twitter @franklewis.