688 / 864
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
5.
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
6.
Growth Property Tax Levies (ORC 5705.211)
1.
Continuous period of time or not less than five years
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.
7.
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