MILLERSBURG -- In light of a November vote to increase the Holmes County sales tax by 0.25 percent, the Holmes County Auditor is reminding vendors of their obligation to comply with the obligation to collect taxes at a new rate.
The increase, taking the total tax from 6.75 percent to 7 percent, was approved 5,647 (51.85 percent) to 5,244 (48.15 percent) by voters.
Of the 7 percent tax, 5.75 percent goes to the state, 1 percent goes to the county general fund and the entire 0.25 percent increase will generate an estimated $1.6 million annually, earmarked exclusively for the county's roads.
The new 0.25 percent will start to be collected on April 1, according to Auditor Jackie McKee, noting that funding will not be available to the Holmes County Engineer until July.
Because the new sales tax will not be collected until April, and potentially not disbursed until July, Holmes County Engineer Chris Young said he's currently seeking alternative short-term funding options, which would allow him to take advantage of the full construction season.
He said he is now doing a present worth to future worth analysis and hopes to have a direction plotted out more clearly in the near future.
The five-year tax will provide the funding to get halfway through a 10-year plan to resurface all the county's roads, according to Young, noting sales tax revenues would be earmarked for contract paving jobs and will not be used to purchase equipment or pay salaries for the highway department.
In anticipation of the change, McKee reminds all vendors of the need to take proper steps to have cash registered for the April 1 change.
If vendors need a new sales tax chart, they can call the auditor's office at 330-674-1896.
There will be no notification sent from the Ohio Department of Taxation; however, vendors can request email notification of sales tax changes on the Ohio Department of Taxation website.
Reporter Christine Pratt can be reached at 330-674-5676 or email@example.com.