by Ernie Strawser, Senior Advisor, Analytics Frontline Education
Background
Sidney School District voters have authorized a fixed-sum levy and a school district income tax on top of their current fixed-rate operating levies of 20 mills. Governor DeWine vetoed budget language to eliminate fixed sum levies, and instead proposed a committee to study property tax reform. The Ohio House of Representatives voted to override the veto, and the issue is now pending before the Ohio Senate. This analysis shows the impact on Sidney City School District, but it is applicable to other Ohio school districts as well.
Replacement of Non-renewed Fixed-Sum levy with new Fixed-Rate Levy
Overview
The chart compares the Tax Year 2025 Emergency Fixed Sum Levy (6.29 mills) with a NEW Tax Year 2026 Fixed Rate Levy under the same millage rate. While the total levy remains constant at $4,609,945, the distribution of the tax burden shifts significantly due to the removal of the state share of property tax covered by the 10% rollback, which would be lost with the elimination of the pre-existing levies.
Tax Year 2025 Levy Distribution
- Class I (Residential/Agricultural): $2,840,301
- Class II (Commercial/Industrial): $1,087,859
- PUPP (Public Utility Personal Property): $189,389
- State Share of Property Tax: $492,396
- Total: $4,609,945
In this year, the state covers nearly $0.5M of the levy through the rollback, directly reducing the local tax burden, especially for homeowners and farmers.
Tax Year 2026 Levy Distribution
- Class I (Residential/Agricultural): $3,332,696
- Class II (Commercial/Industrial): $1,087,859
- PUPP (Public Utility Personal Property): $189,389
- State Share of Property Tax: $0
- Total: $4,609,945
With the expiration of the emergency fixed-sum levy and shift to a fixed-rate levy, the state share disappears, meaning local taxpayers must absorb the full cost of the levy.
Impact of the Change
- Residential/Agricultural Property Owners (Class I)
- Increase: +$492,395
- Share of total levy rises from 62% in 2025 → 72% in 2026.
- This group absorbs the full burden of the lost state contribution.
- Class II (Commercial/Industrial)
- No change: $1,087,859 in both years.
- Share of total levy remains steady at 24%.
- PUPP
- No change: $189,389.
- Consistent share at around 4%.
- State Contribution
- Drops from $492,396 (11%) → $0.
With the expiration of the emergency fixed-sum levy and shift to a fixed-rate levy, the state share disappears, meaning local taxpayers must absorb the full cost of the levy.
Key Takeaways
1. Total levy amount is unchanged at $4.61M.
2. State support via the rollback ends, shifting nearly half a million dollars of tax burden to local taxpayers.
3. Homeowners and farmers (Class I) bear the entire increase, while businesses and utilities see no additional burden.
4. This change represents a 17% increase in local Class I property tax liability.
Conclusion
The shift from an emergency levy with a state rollback to a fixed-rate levy without state support significantly increases the tax burden for residential and agricultural property owners. Policymakers and community members should recognize that while the levy total remains constant, the impact disproportionately affects homeowners and farmers.
Additionally, the district is trending toward budget shortfalls with current levies, and will need to continue reducing services to align expenditures with revenue. The added burden of asking taxpayers to approve a NEW levy that generates no additional dollars is confusing and egregious. Student services will decline if voters, confused by the NEW levy language, do not maintain their current support.