Navigating School District Levy Options Going Forward
UPDATED FROM 10.02.2025 ALERT
Recent legislation has impacted school district levy options. 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.
Subsequently, House Bill 129, which was signed by the Governor on December 19, 2025, reinstated school districts’ ability to renew existing and substitute levies as fixed sum levies for up to five-year terms. However, revenue on fixed-sum property tax levies will be included in the calculation of the 20-mill or 2-mill floor going forward.
The following chart outlines how recent legislation impacted school district levy options for the May 5, 2026 election:
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School District Voted Levy Options |
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LEVY TYPE |
PERMITTED |
ELIMINATED |
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Traditional (Millage Based) Property Taxes |
New current expense levies if the school district’s General Fund carryover balance exceeds prior year General Fund expenditures by less than 100% |
New current expense levies if the school district’s General Fund carryover exceeds prior year General Fund expenditures by 100% or more |
|
New levies for permanent improvements and other permitted purposes (other than current expenses) |
All replacement, replacement with an increase and replacement with a decrease levies |
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|
Renewal and renewal with a decrease levies |
Renewal with an increase levies |
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|
Traditional Emergency (Fixed Sum) Property Taxes |
Renewal and renewal with a decrease levies for up to a five-year period with revenues included in the calculation of the 20-mill or 2-mill floor |
Renewal with an increase levies |
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New levies for any district in fiscal caution, fiscal watch, fiscal emergency or is impacted by an emergency that is the subject of a disaster declaration with revenues included in the calculation of the 20-mill or 2-mill floor |
New levies for any district not in fiscal caution, fiscal watch, fiscal emergency or is impacted by an emergency that is the subject of a disaster declaration |
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|
Substitute (Emergency) Property Taxes |
Substitute (renewal) levies for up to a five-year period with revenues included in the calculation of the 20-mill or 2-mill floor |
New levies |
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Incremental (Millage) Property Taxes |
New current expense levies if the school district’s General Fund carryover balance exceeds prior year General Fund expenditures by less than 100% |
New current expense levies if the school district’s General Fund carryover exceeds prior year General Fund expenditures by 100% or more |
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Renewal and renewal with a decrease levies |
Renewal with an increase and replacement levies |
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Increasing (Dollar or Percentage) Property Taxes |
New current expense levies if the school district’s General Fund carryover balance exceeds prior year General Fund expenditures by less than 100% |
New current expense levies if the school district’s General Fund carryover exceeds prior year General Fund expenditures by 100% or more |
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Renewal levies |
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Combined Current Expense and Permanent Improvement Property Taxes |
New current expense levies if the school district’s General Fund carryover balance exceeds prior year General Fund expenditures by less than 100% |
New current expense levies if the school district’s General Fund carryover exceeds prior year General Fund expenditures by 100% or more |
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Renewal levies |
Replacement levies |
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Combined Income Tax and Fixed Sum Property Taxes |
None |
New and renewal levies |
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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” for all property tax levies.
Bond Issues
Recent legislation 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. It has until December 31, 2026 to do so.
This article is not intended to provide legal advice. Individuals should consult with legal counsel regarding specific questions and circumstances.
