How Is Anderson Township Funded?

Anderson Township derives its annual revenue from several sources including:

• Real Estate Tax
• TIF (Tax Increment Financing)
• Local Government Fund
• Motor Vehicle License Tax
• Gas Tax
• Fees/Leases/Rentals
• Contract Services
• Grants
• Investment Interest

The Anderson Township TIF program allows the township to collect taxes on parcels that were considered ripe for development.  Anderson receives funds for capital improvements on all the taxes collected on the increases in value of those properties.  By agreement with the Forest Hills Local School District and the Cincinnati Public School District the township passes along to them that portion of taxes they would have received if there was no TIF in place.

Approximately 85% of all township revenue is derived from property tax, including TIF revenue. Levies allow voters to choose to raise the money to support the services they demand as residents.  There are two types of property tax, inside millage and outside millage, which is also referred to as special purpose or voted levies.  Unique to the township financial structure is the fact that only a township’s General Fund permits discretionary spending. All other township revenue funds must be expended for specific limited purposes.

The Board of Trustees cannot raise taxes. When the Board of Trustees determines that additional revenues are necessary to maintain or increase township services, it can decide to place the issue before the voters. A majority vote of the electorate is required to pass the issue.