By Cindi Andrews
The Cincinnati Enquirer

Hamilton County is poised to give property owners a half-penny-a-day break on their taxes next year.

Two of the three commissioners say they support allowing $858,220 in earned interest to remain in the accounts of nine countywide levies, rather than going to the county, thus lowering collections by the same amount. It's equivalent to about 0.055 mills and would save the owner of a $100,000 home about $1.90 a year, county officials estimate.

"That is a major step in the right direction and would represent a landmark reduction in property taxes," said Commissioner Todd Portune, who proposed the change.

Commissioners are expected to vote on the tax cut today, and Phil Heimlich said he would support it.

"We're going to provide a leaner, meaner government at a lower price," Heimlich said.

The owner of a $100,000 home is paying $428.44 in taxes this year on 11 countywide levies, including ones for Children's Services, indigent medical care and the Cincinnati Zoo and Botanical Garden. The zoo is seeking a renewal in November, but at a reduced rate of 0.4 mills.

Commissioner John Dowlin said he's against the tax cut. "We're talking peanuts," he said.

The county needs to keep that money to fund the courts and other required services, Dowlin said.

The tax-cut proposal comes at a time when the long-dormant economy is hurting governments' bottom line.

The county expects to get less state money in the coming year, Administrator David Krings said, although he's not yet sure how much less. The state gave Hamilton County about $26 million last year - almost 10 percent of its $258 million budget. Also, the county's sales tax receipts are less than 1 percent higher than in 2002, Krings said - and less than the 2 percent increase the county projected for this year.

"I think it's fair to say it's going to be a tight budget year, but it's not going to be catastrophic," he said.

The commissioners have to pass the county's 2004 tax budget by next week.

E-mail candrews@enquirer.com