As discussed at the conference last week, this is the third time that Rep. Derek Merrin has introduced legislation that would change required levy ballot language. HB 140 is similar to HB 342 (132nd General Assembly) and HB 76 (133rd General Assembly), which the three school management associations and local government organizations opposed. See the Bill text, LSC Analysis and Fiscal Notes.
By necessity, ballot language is technical in nature and not meant to be an accurate estimate of the taxes owed by each individual taxpayer should the levy pass. Instead, the current ballot language describes the taxes that will be levied on behalf of the taxing entity.
Summary of HB 140 changes and concerns:
- Among other changes, the bill revises millage on the ballot to be expressed in terms of $100,000 of appraised value rather than the $100 of tax value.
- During levy campaigns, school districts and other local governments routinely provide an estimated tax obligation on homes valued at $100,000, but they have the ability to distinguish the various factors that will affect this estimate, as described below.
- Many residential properties in Ohio are valued below $100,000.
- Not all types of property in Ohio are taxed uniformly.
- “Taxable value” accounts for differing rates that apply to various classifications of property, which is the term currently used in levy ballot language.
- The “appraised value” standard will not take those differences into account, leading to instances where the tax bill suggested in the ballot language may differ significantly from what will ultimately be owed.
- The following differences among taxpayers, levies, and properties mean the calculation of the actual taxes on an individual property derived from a levy will vary widely:
- Differences between Class 1 (Residential and Agriculture (CAUV)) and Class 2 (Commercial) Property (since the calculation is most often different among the two classes)
- Ex: Property valued using the CAUV method is not valued for tax purposes based on market value.
- The taxpayer may have specific discounts (i.e., the Homestead Exemption).
- The type of levy has a bearing on what a property owner will pay (i.e., for renewal levies, residential property qualifies for the state-paid 10% rollback; commercial properties do not.)
- HB 920 means property owners often pay lower effective rates for levies rather than the full voted rate after the initial year of implementation.
The animated slide deck used in the Legislative Update last week is linked here. Please feel free to modify to reflect your district’s most recent or upcoming ballot issue. Having this side-by-side comparison can really help in discussing the proposed changes with your superintendent, board, and community.