16.7 Local Control Over Taxes

In Ohio, school districts are required to pass a levy to increase local taxes for additional funding. A levy is a request for voters to approve a property tax increase. The process begins with the school board deciding to place a levy on the ballot. This decision is usually based on financial needs such as building repairs, educational programs, or operating expenses. Once the board approves the levy proposal, it must be submitted to the county board of elections by a specified deadline to appear on the ballot for voter approval.

The reporter mentioned the term mill levy. A mill levy is a property tax rate based on the assessed value of a property, expressed in mills. One mill equals one dollar for every $1,000 of assessed property value. This tax is used by school districts to raise revenue.

If voters in the Columbus school district pass a 3-mill levy, it means homeowners will pay an additional $3 for every $1,000 of their property’s assessed value.

Calculating how much a mill levy will cost a particular homeowner can be a bit complicated, so let’s break it down step by step.

If a home is assessed at $200,000, we first convert this value into units of $1,000. So, $200,000 divided by $1,000 equals 200 units. Next, we multiply these 200 units by the mill rate of 3. This calculation results in $600. Therefore, if the 3-mill levy passes, the homeowner with a $200,000 assessed property would need to pay an additional $600 in property taxes.

For the levy to pass, it must receive a majority vote from the community during an election. There are different types of levies, such as operating levies for day-to-day expenses and bond levies for capital improvements.

If the levy passes, the approved tax increase will be implemented to generate the necessary funds for the school district. If it fails, the school board may need to make budget cuts or consider alternative funding options.