Professional Report

board, which must then file a resolution with the county board of elections no later than 90 days before the primary, general, or special election. The first type of income that can be taxed includes the Ohio adjusted gross income and taxable income from an estate. The second option is taxing only wages, salaries, tips, and other employee compensation.

In any case, the tax is paid by residents of the district, regardless of where they may work.

School district income tax issues can only appear on the ballot twice in any given calendar year. If presented twice to voters in a year, one of the elections on the question must be held on the date of the general election. Appendix J is the most recent copy of the Guide to Ohio’s School District Income Tax, prepared by the Ohio Department of Taxation. It provides answers to the most frequently asked questions by taxpayers about the school district income tax. Net indebtedness refers to the principal amount of outstanding securities of a school district less the amount held in a debt service (bond retirement) fund. Boards may not incur net indebtedness in excess of 1/10 of one percent of the total value of all property in the district as listed and assessed for taxation, without a vote of the people. Boards may also incur indebtedness without a vote of the people not to exceed 9/10 of one percent of the total value of all property in the school district for installations, or modifications, or remodeling for energy conservation projects certified by an architect or engineer and approved by the Ohio Construction Facilities Commission (OCFC). The total net indebtedness under Sections 133.04 and 133.042 cannot exceed one percent of the total value of all property. However, securities issued under ORC 3318.052 are not included in the calculation of net indebtedness. These securities are issued with a covenant approved by the board to appropriate annually from lawfully available proceeds of a property tax or school district income tax the amounts necessary to pay the debt charges and financing costs related to the securities. Boards may not submit bond issues which will make the net indebtedness higher than 4 percent of the assessed valuation without securing the consent of the tax commissioner and the superintendent of public instruction acting under the policies adopted by the State Board of Education. If the voters do not approve the bond issue, the district need not submit a new application to the superintendent of public instruction and tax commissioner for permission to exceed the 4% of its taxable valuation if the issue is submitted at the next possible special election (which is defined in ORC 3501.01.

INDEBTEDNESS, NET

133.04

133.06(A)

133.06(G)

3318.052

133.06(C)

133.06(B)

Generally, the upper limit for net indebtedness is 9%, but there are a few exceptions.

133.06€, (F)

Exceptions are provided for special needs districts (which are experiencing rapid enrollment growth) and districts whose facilities have been destroyed or condemned.