Professional Report

Overview of Local School Operating Tax Options in Ohio Page 3

1.

Can combine bond issue with current expense and/or permanent

improvements 2.

Resolution must specify number of years or continuing period of time (if combined with current expenses and/or general permanent improvements) 3. Resolution also apportions proceeds between current expenses and and/or general permanent improvements (if applicable) after deducting amount required to retire debt in any given year Conversion Levy ORC 5705.219 1. Applies to districts with current expense levies in excess of the 20-mill floor for Class I property 2. Available as a tool for districts only from January 1, 2010 to January 1, 2015 3. Converts the current expense levies in excess of 20 mills (fixed rate levies) to emergency levies (fixed dollar) lasting up to ten years or for continuing period of time 4. Resolution requires approval of majority of members of board (rather than 2/3 of the members) 5. Can be renewed (resolution requires approval by 2/3 of board members); renewal can be for ten years or for continuing period of time 6. State pays difference for Class II real property since it would have different effective rate 2. Apparently requires only majority vote of members of board of education 3. Fixed rate levy applied to “cumulative carryover property value increase”; increases local tax collections without new construction 4. Limit to growth is up to 104% of “sums levied from the tax against carryover property in the preceding year 5. In addition to No. 2 and No. 3, growth will occur due to inflation of real estate when levy is a rate with rate increments. Incremental Tax Rate Levy (ORC 5705.212) 1. Resolution (approved by 2/3 of members of board of education) proposes up to five taxes (including original) to be decided by voters at a special election 2. Each levied in a different year. 3. First tax is called “original tax”; subsequent taxes called incremental tax. 5. Each incremental tax must be identical but need not be the same as the original rate. 5. May be up to 10 years or for continuing period of time. 6. Renewal levy will combine original tax rate and each incremental tax rate into a single rate and renewed at current effective rate; renewal can be submitted at general election held during last year of original tax or any special election held during ensuing year 5. 6. Growth Property Tax Levies (ORC 5705.211) 1. Continuous period of time or not less than five years 7.