To amend sections 319.301, 323.32, 5705.01, 5705.03, 5705.194, and 5709.92 and to enact sections 5705.195, 5705.196, and 5705.197 of the Revised Code to generally include fixed-sum levies in the calculation of a school district's millage floor and to authorize, with limitations, school district fixed-sum levies.
Summary
HB129 amends Ohio law governing school district property tax reductions and the ten-mill limitation. The bill changes section 319.301 to limit a school district’s ability to reallocate unvoted property tax millage in a way that would affect the effective millage floor, and it expands the calculation of that floor to include certain school district income taxes and other qualifying taxes. In practical terms, the bill is aimed at making sure school districts cannot use changes in levy purpose or related tax structures to reduce property-tax burdens in a way that would undermine the minimum effective tax rate calculation.
The bill also revises section 5705.314 to restrict when a board of education may change the purpose of a levy within the ten-mill limitation if the change would increase real property taxes in the year it takes effect. For school districts, the measure preserves the existing public hearing and notice requirements for levy changes that would raise taxes, while tightening the circumstances under which such changes can be made. The bill applies prospectively to tax years and levies beginning on or after its effective date.
Impact
HB129 would alter how Ohio calculates school district effective millage floors by folding in certain property taxes and school district income taxes, which could reduce opportunities for districts to shift or reclassify levy purposes to affect tax reductions. It would also constrain school boards’ authority to change levy purposes within the ten-mill limitation when those changes would increase real property taxes, thereby affecting school district budgeting, levy administration, county auditors, and taxpayers in affected districts. The bill amends and repeals portions of the Revised Code, primarily sections 319.301 and 5705.314, and its changes would apply only to future tax years and future authorized levies.
Sentiment
The available voting history suggests the bill received generally favorable treatment and was able to advance through both chambers, with strong majority support in the House and Senate. The committee vote was unanimous in the House Ways and Means Committee, and floor votes showed clear passage despite some opposition. Overall, the sentiment appears supportive of the bill’s goal of tightening school tax rules and clarifying the treatment of levy changes, though not without some dissent.
Contention
The main point of contention is likely the bill’s effect on school district taxing authority and local control. Supporters appear to favor limiting school districts’ ability to reallocate unvoted millage and ensuring that effective millage floor calculations reflect all relevant tax sources, including certain school district income taxes. Opponents, as reflected by the recorded no votes, may view the measure as constraining school boards’ flexibility to manage levies and potentially complicating local tax administration. The bill’s tax implications for property owners and school funding are the central policy tradeoff.