Professional Report

Overview of Local School Operating Tax Options in Ohio Page 5

5. Senior citizen, nonrefundable credit (65 years of age at any time during tax year) of $50 for each return filed 6. Issue can be submitted to voters only twice during any calendar year; if submitted twice, one time must be at general election. 7. Resolution (adopted by majority of members of board) specifies rate and income subject to the tax; tax may be for a specified number of years or for a continuing period of time. 8. Can be apportioned between current expenses and permanent improvements; apportionment may be same or different for each year that tax is levied. 9. May be renewed. 10. If approved only for current expenses and for continuing period of time, it may be used to reduce one or more of the school district’s current expense taxes levied for a continuing period of time. 11. Cannot approve both a traditional and earned income tax in the same school district. 12. Can replace a traditional income tax with an earned income tax. 13. May be reduced in multiples of one-quarter of one percent by majority vote of the board of education 14. If used to replace all or part of existing property tax levy, property tax levy is reinstated if income tax is repealed. 15. Can be repealed if the specified period of time for the tax is more than five years or for a continuing period of time; if repeal is not successful, no other repeal initiative can be undertaken for five years. Resolution (adopted by 2/3 of members of board of education) must state whether tax base is traditional or earned income and whether income tax is for a specified number of years or for a continuing period of time. 13. Combined Income Tax/Property Tax (ORC 5748.09) 1. Resolution (approved by 2/3 of members of board of education) would place both school district income tax and property tax as a single issue on the ballot. 2. Resolution must state whether income subject to tax is identical to the school district traditional or to the earned income tax. 3. Property tax portion is a fixed dollar levy and must be filed with tax commissioner and county auditor at least 100 days prior to election. 4. Income tax portion can be proposed “for a specified number of years or for a continuing period of time” while property tax portion can be for up to ten years or for a continuing period of time. 5. Issue may be submitted to voters only twice during any calendar year; if twice, one election must be the general election. 6. May be renewed if the last calendar year for collection of both the income tax and the property tax are the same. 12. Income Tax/Bond Issue (ORC 5748.08) 1. principal and interest to be paid by property tax 2. May submit a combined school district income tax and bond issue with