Navigating School District Levy Options Going Forward
Amended Substitute H.B. 96 (“H.B. 96”), the State’s biennial budget bill, contained provisions limiting a variety of school district levy options after January 1, 2026. The Governor of the State vetoed many of these provisions through veto #66 to H.B. 96, but that veto has been overridden by the General Assembly. Beginning with the May 5, 2026 election, H.B. 96 significantly impacts school districts’ levy options.
The following chart outlines how H.B. 96 impacted school district levy options:
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School District Voted Levy Options |
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LEVY TYPE |
PERMITTED |
ELIMINATED |
|
Traditional |
New current expense levies if the school district’s carryover is not 100% or more of prior General Fund expenditures |
New current expense levies if the school district’s carryover is 100% or more of prior General Fund expenditures |
|
New levies for permanent improvements and other permitted purposes (other than current expenses) |
Renewal with an increase levies |
|
|
Renewal and renewal with a decrease levies |
Replacement levies |
|
|
Traditional Emergency |
None |
All new and renewal options |
|
Substitute |
None |
All new and substitute (renewal) options |
|
Incremental |
New current expense levies if the school district’s carryover is less than 100% of prior General Fund expenditures |
New current expense levies if the school district’s carryover is 100% or more of prior General Fund expenditures |
|
Renewal and renewal with a decrease levies |
Renewal with an increase and replacement levies |
|
|
Increasing (Dollar or Percentage) Property Taxes |
New current expense levies if the school district’s carryover is less than 100% of prior General Fund expenditures |
New current expense levies if the school district’s carryover is more than 100% of prior General Fund expenditures |
|
Renewal levies |
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Combined Current Expense and Permanent Improvement Property Taxes |
New levies if the school district’s carryover is less than 100% of prior General Fund expenditures |
New levies if the school district’s carryover is more than 100% of prior General Fund expenditures |
|
Renewal levies |
Replacement levies |
|
|
Combined Income Tax and |
None |
New and renewal levies |
|
Income Taxes |
New and renewal levies on traditional base (without estates) or earned income base |
Collection of income tax on estates for new and existing traditional base levies |
Notices of Election for Current Expense Levies
Notices of election for all voted current expense levies will include the percentage and amount of the school district’s General Fund carry-over balance, and “appraised value” will be changed to “market value.”
Bond Issues
H.B. 96 does not affect bond issue options, including stand-alone ballot questions, a bond issue combined with an operating or permanent improvement levy or combined with an income tax.
Other Vetoes
H.B. 96 also included a number of other property tax related measures that were also vetoed by the Governor (see the following link for more detail in the Governor’s veto message: http://www.legislature.ohio.gov/assets/legislation/legislation-documents/136/VetoMessageAmSubHB96.pdf). It is unknown whether the General Assembly will vote to override any of those other vetoes.
This article is not intended to provide legal advice. Individuals should consult with legal counsel regarding specific questions and circumstances.
