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Issue 36 (Zero Tax Increase) Levy Information

Last Updated: 10/17/2020 4:28 PM

Tuesday, November 3, is an important day for our schools and local community. The ballot includes many state and national candidate races and a renewal levy (Issue 36) for the Cuyahoga Falls City Schools.  

LEVY FACTS:

  • The Renewal Levy (Issue 36) is NOT a tax increase. 
  • The Renewal Levy (Issue 36) is a request to renew an existing Cuyahoga Falls Schools operating levy.
  • This levy brings in $5.7 million dollars annually to the district’s operating levy fund each year. This levy must be renewed or the district will lose that amount of revenue.
  • Loss of these funds would force drastic cuts across the district, affecting every student in every school.
  • The Renewal Levy will generate the same amount per year for our schools as currently collected.
  • The Levy was originally passed in 2005, and has been renewed in 2009 and 2014.
  • Renewal of this levy maintains the current level of funding. 
  • This renewal is not permanent. It is for a five-year period of time.
  • The Renewal Levy generates approximately 10% of the district’s operating revenue.

Request a Issue 36 Yard Sign here.

Important Dates

October 6: Early Voting Begins

November 3: Election Day

BLACK TIGER PRIDE – COMMUNITY WIDE!

 

ISSUE 36 OVERVIEW

ISSUE 36 is a renewal of a 7.9 mill levy that was originally passed in 2005 and was renewed in 2009 and again in 2014.  


Due to HB920, which was implemented in 1976, a school district levy is capped by two factors: 

  • millage rate 
  • And the amount generated.  

In other words, the millage rate can never exceed 7.9 mills during times when property valuation in the district declines like it did in the first decade of 2000. And, the amount of money cannot ever exceed the amount originally collected when property valuation in the district increases as it normally does.  

Therefore, as property valuation in the district increases, as it normally does with inflation and development, the effective rate of the levy declines so that more money is not collected.  In this specific case, the effective rate has declined to 7.25 mills, but it is still the same levy.  As such, this is a renewal and is not a new tax.


There are two exemptions that are often confused for each other or lumped into the same category, property tax rollback and homestead exemption. Let’s start with property tax rollbacks. 

Property tax rollbacks: Every residential property owner is eligible to receive the 10% and 2 1/2% rollbacks.  These became effective more than 30 years ago with the enactment of the State Income Tax.  For levies passed prior to November 2013, residential and agricultural property owners receive a 10% rollback.  Also, the owner-occupied credit, 2 1/2% rollback is applied to residential property tax calculations. For levies passed after November 2013 that include an increase in funding, these two rollbacks are not afforded to the property owner.
The Homestead Exemption is open to any Ohio homeowner who currently lives in their home, and that home is their primary residence, who:

  • Is at least 65 years old or will reach age 65 during the current tax year; or
  • Is certified totally and permanently disabled as of Jan. 1 of the current tax year, regardless of age; or
  • Is the surviving spouse of a qualified homeowner, and who was at least 59 years old on the date of their spouse's death. Manufactured homes are also included in this Homestead Program.

 

Eligible homeowners are able to shield $25,000 worth of the market value of their home from local property taxes. Applications are generally available at the County Auditor's Office.

The actual calculation is as follows:

  • Current effective millage rate is 7.25; generates $5,716,444/yr.
  • For each $100,000 value of property, 35% is the taxable amount. pays $222.03/year in taxes

o   100,000 x .35 = $35,000

The current effective rate of the 7.9 mill levy originally passed in 2005 is now approximately 7.25 mills.  A mill is defined as $1 for every $1,000 of the taxable amount.

o   $35,000 x .00725 = $253.75

Then the property tax rollback of 12.5% is applied and the tax-payer in an owner-occupied home will be assessed as follows:

o   $253.75 x .875 = $222.03

 

For those who apply and qualify, the homestead exemption can shield up to $25,000 of the property’s value.

This levy generates approximately $5.7 million which is nearly 9.8% of the district’s general revenue fund (GRF) budget which was estimated to be $57.9 million for FY21 on the May 2020 Five-year Forecast.  Local property taxes account for approximately 62% of the GRF budget; whereas, revenue from the state accounts for approximately 38% of the GRF budget.  All federal revenue is restricted as to the use and placed into funds that are separate from the GRF.