The Cincinnati Enquirer

FOR MORE

Today's stories: • A third of Ohio districts seeking money • A look at school issues and cost to property owners Online extras: • Gloomy forecast • Levy glossary • School tax Q&A Previous levy coverage: • State rating an issue in levy ballot • Batavia schools plan cuts • W. Clermont seeks 7.9 mills • Reading needs levy for success, educator says • Middletown schools to trim • Three Rivers seeks a levy • Levy on ballot for new Lakota school • Tax increase sought for Madeira schools • Lakota growth, deficit forces levy, $10 million cuts • Levy vote key to school planning • Edgewood to ask for 6.9-mill levy • Franklin Schools asking for help • Springboro seeks to build two new elementary schools • Mason school board starts steps for 1.8-mill bond issue • Ross to ask voters for two school levies

-Assessed valuation: The percentage of valuation that is subject to taxation. Residential property is assessed at 35 percent.

-Base formula amount: Dollar figure assigned by the General Assembly that represents what the state believes it costs to adequately educate one child with no special needs for one year. For fiscal year 2004 (which ends June 30), the base formula amount is $5,058. In fiscal year 2005, the amount is $5,169.

-Bond levy: Property tax levies used to provide the local revenue for construction purposes.

-Continuing levy: Levy proposing millage rate or school district income tax that is assessed indefinitely.

-Effective mills: The actual rate of taxation realized when the tax reduction factor reduces the taxes charged by a voted levy. It equals the taxes charged divided by the taxable value of the property against which they apply.

-Emergency levy: Limited levy proposed up to five years for a specific dollar amount.

-Foundation formula: Method of funding schools through a combination of state and local aid. It is based on the ability of school districts to raise tax revenues as well as the state-determined minimum amount necessary per student to provide an adequate education.

-Gap aid: A form of state aid by which the state pays a school district whose local tax revenues do not equal the district's share of formula costs.

-Inside mills: Millage imposed by local governments without voter approval. Inside mills are not subject to the property tax reduction factor. Sometimes referred to as "unvoted mills."

-Limited levy: Levy proposing a millage rate or school district income tax that is assessed for a specified period of time.

-Millage: Factor applied to the taxable, valuation of real and personal tangible property to produce tax revenue. A mill is defined as one-tenth of a percent or one-tenth of a cent (0.1¢) in cash terms.

-Operating levy: Levy used primarily for district operating purposes. Can be either continuing or limited.

-Outside mills: Millage approved by voters. Outside mills are subject to the property tax reduction factor. Sometimes referred to as "voted mills."

-Permanent improvement levy: Limited or continuing levy used for maintenance and repair of school property, and, in some limited circumstances, for renovation and building projects.

-Property tax reduction factor: An adjustment by which the taxes charged by voted mills on real property are reduced to yield the same amount as those same mills yielded in the preceding year, exclusive of new construction. The reduction factor does not apply to inside mills or to voted mills charged against general and public utility personal property.

-Reappraisal: Appraisal by the county auditor of the value of real property for tax purposes. It occurs every sixth year. Three years after each reappraisal, the county auditor adjusts appraised values based on recent sales of property in that county.

-Reappraisal phantom revenue: Term used to describe the interaction between the state foundation formula and the tax reduction factor. The state formula works as though each increase in a school district's real property value results in more local revenue and reduces the district's state aid accordingly. The property tax reduction factor prevents most growth in valuation from yielding additional revenue.

-Renewal levy: Voter approval needed to extend the term of a limited levy when it expires.

-Replacement levy: Seeks voter approval to extend the term of a limited levy when it expires. A replacement levy allows a district to obtain the benefit of growth in the real property tax since the approval of the replaced levy.

-School district income tax: Limited or continuing levy proposed as a percentage rate on the income of district residents as reported for state income tax purposes.

-Compiled by contributor Sue Kiesewetter; source: Ohio School Boards Association