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New state tax rules and levy changes to cut Tiffin City Schools’ local revenue by about $1.2 million, board told
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Summary
Board treasurer outlined how House Bill 129 and House Bill 186 (effective March 20) will remove the district from the 20-mill floor and change levy treatment, projecting roughly $1.2 million less local revenue for tax year 2026 (payable 2027) and a drop in collections from about $17.5 million to $16.3 million under the new law.
Tiffin City Schools officials told the school board that two recently enacted Ohio laws will reduce local property-tax revenue and add uncertainty to the district’s upcoming budget.
Treasurer Adam said the changes in House Bill 129 and House Bill 186, both effective March 20, alter how substitute/emergency levies are treated and cap property-growth calculations after a reappraisal. “We reached the 20 floor in 2024 after the reevaluation in ’23,” Adam said, and the new rules “take us off the 20 mill floor” and rename some levies as fixed-sum levies.
Adam told the board the practical effect will be a reduction in locally collected taxes beginning in tax year 2026, payable in 2027. He projected a roughly $1,200,000 drop in local funds and showed estimates that collections would fall from about $17,500,000 under the old rules to about $16,300,000 under the new law. He also noted one emergency levy of 3.5 mills generates roughly $1,640,000 annually and will now be included in the state’s millage calculations.
Board members and administration framed the change as a compounded loss: less local revenue combined with a state funding formula that does not fully offset local shortfalls. Adam said the bills also include a retroactive tax credit for residents in reappraisal counties and that the state will fund part of the change by canceling the 2026 sales-tax holiday, which slightly offsets the impact. “It’s a double loss if we consider that we’re gonna have less local revenue and less state aid,” Adam said.
Board members asked about timing for other related revenue streams. Adam estimated the district would not see new income-tax collections tied to the change until the second half of next year and suggested the district could receive roughly $1,000,000 in the second quarter once collections begin. He recommended continued advocacy with legislators and said staff will monitor enrollment and budget implications.
The board did not take formal action on funding changes at the meeting; members said they will continue outreach to state lawmakers and may pursue resolutions or collective advocacy with other districts.
