Treasurer's Terms & Definitions you should know!

The Ohio School Boards Association has created a brochure called "Understanding School Levies".  This gives the reader a brief understanding about the different types of levies.

Th Ohio department of Taxation has created a booklet called "Guide to Ohio's School District Income Tax".  This publication deals with School District Income Tax and the explanation of how it works.

The State of Ohio offers two types of income tax levies.  The first and original type of income tax levy was called the "Traditional" income tax levy and includes all income.  The second and newest option of the income tax levy only looks at "earned income".  The Ohio Department of Taxation has created a publication that identifies what "earned income" is. This publication can be viewed by clicking on the blue highlighted words above.  The expected amount that an income tax would generate are listed in two ways.  The first is the "Traditional" and the second one is only on "Earned Income".  Keep in mind that an income tax levy can only be passed in 1/4 % increments.  The amount of revenue that each type of income tax levy would generate is listed next to the anticipated levy percent as well as the  equivalent amount of mills in property tax it is equal to.  Click here to view this income tax spreadsheet provided by the Ohio Department of Taxation.

The Department of Taxation collects and disperses the revenue generated from a school district income tax levy.  The attached handout from the Department of Taxation explains the "Timeline for Receiving School District Income Tax payments".

This spreadsheet details the Hudson City School District Levy History.

House Bill 920 was enacted in 1976.  This bill was intended to stop the growth of school levies so that when a district passed a specific mill levy it also created a specific dollar amount.  This means that as property values grow, the millage is rolled back so that only the specific dollar amount is to be collected.  This means that if a 5 mill levy was passed 10 years ago, that levy is only bringing in that same amount of money that it was originally passed for.  For example the 5.5 mill levy that was passed by the Hudson residents in November 2006 is now only assessed at 5.45 mills.  The levy that was passed in 3-3-81 for 7.1 mills is now only assessed at 3.58 mills. Click here for an example of how HB920 works. 

In 1996 I wrote a paper on HB920 while attending Ashland University.  This paper explains the history of HB920, the effect it has on local revenue, state basic aid, and on the taxpayers of Ohio.  There is even an example of how HB920 works on property value.

 


For questions regarding this page, please contact Mr. Bart Griffith, Treasurer
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