The city of Beachwood is known for its upscale shopping, dining, and business establishments that cater to tourists and residents alike. But how much does the city rely on these commercial businesses for its economic benefits? How does it compare to the rest of the state and even other municipalities? After analyzing the economic impact of Beachwood’s commercial tax base versus its residential it is clear Beachwood is heavily reliant on its commercial tax base.
According to a report by the Ohio Development Services Agency, Beachwood’s commercial tax base is among the highest in the state, comprising 72% of the city’s total income tax revenue. In contrast, residential tax revenue only makes up 28%. This indicates that Beachwood’s economy heavily relies on its commercial businesses to generate revenue and contribute to the city’s economic growth.
Moreover, Beachwood’s commercial tax base is proportionally higher compared to other municipalities in the state that are similar in population size. For instance, the cities of Dublin, Hilliard, and New Albany’s commercial tax base only accounts for around 50-60% of their total income tax revenue. This suggests that Beachwood’s economy is unique in its dependence on commercial businesses.
A significant contributor to Beachwood’s commercial tax base is the presence of upscale shopping centers like Beachwood Place. This mall alone generates a considerable amount of income tax revenue for the city. Not to mention the many headquarters of prominent businesses based in Beachwood, such as OMNOVA Solutions and DDR Corp, which contribute to the city’s income tax base as well.
Despite the reliance on commercial businesses, the city of Beachwood recognizes the importance of residential properties in generating revenue. For instance, in 2020, the city began offering a rebate program to promote residential development within the city limits. Homeowners who purchased and improved a home in Beachwood were eligible for a $2,500 rebate over a five-year period.
Beachwood’s economy heavily relies on its commercial tax base, which generates 72% of the city’s total income tax revenue. This proportion is higher compared to other municipalities similar in population size. Beachwood’s upscale shopping centers and prominent businesses contribute significantly to the city’s commercial tax base. However, the city also recognizes the importance of residential properties in generating revenue and offers incentives for residential development. Overall, Beachwood’s economy is unique in its dependence on commercial businesses, and the city is taking measures to balance out its tax base.