Professional Report

OVERVIEW OF LOCAL SCHOOL OPERATING TAX OPTIONS IN OHIO

1. Categories of Taxes a. New

i. Additional dollars for political subdivision ii. Result is tax increase for residents

b. Renewal

i. Continues either rate or total dollars ii. May not increase taxes

c. Replacement (ORC 5705.192)

i. Increases or decreases either tax rate or dollar amount of expiring tax ii. Could increase or decrease taxes iii. Cannot be used for emergency levies but can replace levies that are for continuing period of time

2. Tax Concepts

a. Appraisal and triennial updates b. Assessed value, voted millage, and effective millage (HB 920) c. Real property taxes i. Class I (includes current agricultural use value) ii. Class II iii. Tangible personal property iv. Utility personal property d. Millage rollbacks (10% and 2.5%) e. Homestead exemption f. Remnants of the charge-off (phantom revenue) g. Income tax (in increments of a quarter of a percent) h. Sales tax (limited application for schools)

3. Frequency of ballot issues (ORC 5705.214) 4. Local property tax issues generally require: a. 2/3 affirmative vote of all members for resolution to place issue on ballot b. County auditor estimate of millage/amount c. Generally, resolution to board of elections 90 days before election; 100 days (for some kinds of issues) to 105 days before election for notice to tax commissioner (if necessary)