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Overview of Local School Operating Tax Options in Ohio
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8.
Incremental Tax Amount Levy
ORC 5705.213
1.
Fixed dollar equivalent of Incremental Tax Rate Levy
2.
Resolution (approved by 2/3 of members of board of education) provides
that each year after the first year the levy is assessed, an amount may be specified as a
dollar or percentage increase.
3.
May be up to 10 years but not for continuing period of time.
4.
Renewal levy will be no more than the amount of tax levied during the last
year.
5.
Renewal levy may be up to 10 years or continuing period of time.
6.
Is treated as emergency levy for the purpose of calculating the minimum
millage for tax reduction purposes.
9.
Substitute Levy ORC 5705.199
1.
Resolution (approved by 2/3 of all members of the board of education)
seeks to substitute this levy for all or a portion of an existing emergency levy or levies.
2.
Allows for an increased dollar amount by adding to the tax duplicate new
land or real property improvements which is then taxed at the rate of the tax in the prior
year; new taxable value cannot be less than zero
3.
Levy may be for ten years or for continuing period of time.
4.
For purposes of the tangible personal property replacement funds, levy is
treated as a renewal of existing emergency levy(ies).
10. County Financing District (ORC 3311.50)
1.
Created initially by resolution of the governing board of educational
service center and includes all districts in the ESC territory.
2.
Districts may withdraw from county financing district, but any county tax
remains in effect until such tax expires or is renewed.
3.
Purposes (as stated in ESC resolution) may include one or more of the
following: special education; specified educational programs and services; and
permanent improvements of participating school districts.
4.
District joining subsequent to creation of financing district must secure
voter approval if tax is currently in effect.
5.
Employs no staff but relies on ESC staff for the performance of necessary
functions.
11. Income Tax Levy (ORC 5748.01 through 5748.06)
1.
Collected as a rate on resident’s income in one-quarter of one percent
increments; resolution placing issue before voters must specify either the traditional
income tax or the earned income tax.
2. Traditional income tax uses same tax base as state income tax and
taxable income from an estate [ORC 5748.02(E)(1)(a) and (2)].
3.
Earned income tax uses only earned income and self-employment income
(including income from partnerships) [ORC 5748.02(E)(1)(b)].
4.
Taxpayers are those who live within the taxing school district regardless of
where they work; corporations are exempt (except for those claiming subchapter S
status for tax purposes).