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Board hears how House Bill 920 and 20-mill floor affect Marlington levy revenue
Summary
Superintendent Swisser explained that a renewal levy is not a new tax and described how Ohio's House Bill 920 limits homeowner revenue gains while the State Constitution's 20-mill floor and public-utility taxation can increase district collections; board discussed options including a targeted 3-mill levy to capture more utility revenue.
Superintendent Swisser told the board the levy on the ballot is a renewal, not a new tax, and outlined how Ohio law affects what the district collects.
Swisser explained that House Bill 920 (1976) limits collections after reappraisal by preserving the effective millage at the time of the levy, which protects homeowners from automatic increases tied to property-value reappraisals. At the same time, he said the State Constitution includes a 20-mill floor that can raise a district's effective millage toward 20 mills under some conditions.
"House Bill 920...protects the taxpayers," Swisser said, and he clarified that homeowners who vote down a renewal would not see a drop in residential taxes because HB 920 governs effective rates; rather, the district would lose revenue from public utilities, which are not subject to HB 920's effective-rate limitations.
Swisser gave an example saying one public-utility taxpayer ("Nexus") brings in roughly $393,000 to $400,000 a year under the current voted millage, and he said if the renewal fails the district would lose that utility-derived revenue while homeowners would not experience a corresponding tax reduction.
Board members and the superintendent discussed possible alternatives, including a three-mill operating levy framed to avoid increasing homeowner tax bills while raising additional revenue from public utilities. The board also noted that state legislators are debating changes to levy rules, such as emergency/replacement language that could affect the 20-mill floor, but constitutional change would be required to remove the 20-mill floor entirely.
The discussion was explanatory and informational; the board did not take a separate vote on placing an additional levy at this meeting.
