Other districts will see some increased revenue, but not as much.
The reason some districts benefit more than others from increasing property values is a phenomenon called the “20-mill floor.” Districts above the floor will see the effective tax rate — or millage — of voted levies lowered so they collect the same amount of money. Districts at the floor can’t have their millage lowered anymore because state law sets the minimum at 20 mills.
Districts at the 20-mill floor who are seeking levies say the additional money provided by increased values can only be used for daily operations and can’t fund items like renovating buildings in Greeneview’s and Yellow Springs’ cases.
Beavercreek schools officials say the district’s levy on the ballot is a replacement of an old levy that would push the collection of money back up to 1 mill and capture funds from new homes.
Property taxes and school levies
A mill represents one dollar for every thousand dollars in taxable property values.
Property taxes are levied on 35% of the entire property. So 1 mill against a $100,000 house would collect $35. But most homeowners also get tax exemptions of about 12.5% on many, but not all levies, which brings the amount down to about $30.63 for those levies.
The state’s constitution allows for the first 10 mills of property taxes to exist on tax bills without any prior voter approval. This is called “inside millage.” Outside millage, on the other hand, is what voters approve through levies.
For most outside millage, when property values go up — as they are in Greene and Montgomery counties this coming year — the Ohio Department of Taxations adjusts the millage, or the rate at which properties are taxed, to make sure the school, or the township levy, collects the same amount of money as they did before.
School districts in counties with rising property values will see an increase in revenue from inside millage. But the total amount of taxes collected from outside millage, which funds most operations for schools, do not change unless voters approve it.
If you want to review your own property’s values and how they are expected to change, you can visit your county’s auditor’s website. You can also call the auditor’s offices.
Shannon Cox, Montgomery County Educational Services Center superintendent, noted the valuations occur every three years, not every year.
“There’s a huge, ‘Oh, my goodness, these are really significant increases’,” Cox said. “I think the most important thing that we have to remember is that this is not going to happen every single year.”
The 20-mill floor
There’s an exception to outside millage tax collections staying the same. State law says the total tax rate for school district general fund levies cannot fall below 20 mills.
In that case, the property tax rate cannot be adjusted down below the minimum 20-mill mark. Since values go up, and the tax rate is not adjusted down, that means taxes go up.
Only a handful of Montgomery County schools are affected. Miamisburg is already on the 20-mill floor, and Valley View and New Lebanon will be on the 20-mill floor in 2024, according to the Montgomery County Auditor’s office.
In Greene County, the only school district not impacted by the 20-mill floor is Bellbrook-Sugarcreek, according to the Greene County Auditor’s Office.
Beavercreek
Beavercreek is one of the districts at the 20-mill floor. That means that for houses in Beavercreek with a rise in property values, property taxes will increase.
According to projections from the Greene County Auditor’s Office, Beavercreek Schools are expecting their operation revenues to rise by about $12 million because of this.
Beavercreek local schools is asking for a 1-mill replacement levy. If it passes, a homeowner would pay $35 a year for every $100,000 in taxable property valuation.
Under the current property tax, homeowners pay about $14 per $100,000 in property valuation per year.
If approved, the Beavercreek levy would start generating revenue in January 2024 and expire in December 2028. It would collect about $2.2 million per year.
Paul Otten, Beavercreek superintendent, noted the levy on the ballot, if approved, would use 2022 property values, not 2023 or the increase in 2024.
“The levy that is on the ballot in November is not tied to the general fund for operating expenses,” Otten said. “The levy is a Permanent Improvement Levy which is used for capital improvement projects, maintenance and repairs of school property, and the purchase of certain equipment items that are designed to last five years or more.”
Yellow Springs, Greeneview
Yellow Springs and Greeneview are also at the 20-mill floor. Their levies are related to bond issues that would raise money for school renovations.
Greeneview has a $19 million issue on the ballot for additions and renovations needed to consolidate three campuses into two.
The Greene County Auditor’s Office estimates the increase in revenue from property values at about $2.2 million.
“While we anticipate an increase in revenue to the district’s general fund, those funds are intended for salaries, benefits, utilities, contracts, and other district operating costs,” said Brittany DeWitt, spokeswoman for Greeneview Local Schools. “A bond issue raises money that, by law, can be used only for capital costs — building construction and/or renovations — and is used to finance permanent improvements, which is any property or asset having an estimated useful life of five years or more.”
Yellow Springs is asking for a 7.9-mill, $26.3 million levy over 37 years and a 1% income tax levy to build new school buildings. The property tax would cost $277 per $100,000 in property value. The income tax would be $500 per $50,000 in taxable income.
Yellow Springs says it plans to renovate Mills Lawn Elementary School and the high school and add onto the existing buildings. The project will cost an estimated $55 million, but because the district has some Ohio Facilities Construction Commission money, the local share is about $46 million.
The Greene County Auditor’s Office estimates the increase in revenue from property tax increases in the school district at about $964,005.
“The increase we could experience would not be enough to cover the costs of our projects,” said Yellow Springs treasurer Jacob McGrath. “Additionally, even though revenues are likely to increase, we still experience the cost of inflation just like all businesses and public entities. Even though revenues will grow, we also have growing expenses to account for as well. This is all made more complicated by measures at the state level to change the way property values are calculated and possibly how schools are funded.”
Yellow Springs voter Dawn Johnson Firestone has set up a PAC called “Love YS, Vote No.” She is campaigning against the school levy, but declined to speak to the Dayton Daily News. Voters including Firestone have written editorials in the Yellow Springs News opposing the levy due to its cost.
Sydney Dawes contributed to this story.
Projected revenue increase in 2024 for Greene County school districts because of rising property values (Source: Greene County Auditor’s Office):
Fairborn school: $4,975,141
Beavercreek schools: $12,521,927
Cedar Cliff schools: $926,783
Greeneview schools: $2,157,668
Bellbrook Sugarcreek schools: $1,575,798
Xenia schools: $5,737,436
Yellow Springs schools: $964,005
Greene County Career Center: $2,975,544
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