Effective: June 3, 2002
Latest Legislation: House Bill 129 - 124th General Assembly
(A) As used in this section:
(1) "Indirect debt limit" means such limitation, in effect at the time of issuance, upon the issuance of unvoted general obligation bonds, notes, or certificates of indebtedness by a subdivision as results from a restriction on the amount of unvoted taxes which may be levied annually upon the general tax lists and duplicates.
(2) "Direct debt limit" means those respective limitations on the principal amount of net indebtedness which may be created or incurred by a municipal corporation, school district, county, or township, imposed by sections 133.05, 133.06, 133.07, and 133.09 of the Revised Code.
(3) "Ten-mill limit" means unvoted taxes of ten mills annually on each dollar of tax valuation of property on the general tax lists and duplicates.
(4) "One per cent limit" means unvoted taxes at such rates upon the tax value as amounts to one per cent annually of the true value in money of property that is listed on the general tax lists and duplicates.
(5) "Exempt obligations" means unvoted general obligation bonds, notes, and certificates of indebtedness of a municipal corporation, school district, county, or township that are excluded, exempted, or not considered in calculating or ascertaining the direct debt limit of such a subdivision; and also includes unvoted general obligation bonds, notes, and certificates of indebtedness of a municipal corporation if the ordinance authorizing their issuance provides that the debt charges thereon, or, in the case of bond anticipation notes, the debt charges on the bonds in anticipation of which they are issued, shall be paid from lawfully available municipal income taxes to the extent needed to meet such debt charges, and contains a covenant, hereby authorized, to appropriate annually from such municipal income taxes such amount as is necessary to meet such annual debt charges, and further makes provision that any ad valorem property taxes which are provided for pursuant to section 133.22 or 133.23 of the Revised Code shall, in addition to any other reduction permitted by those sections, be reduced by the amount of such municipal income taxes to be applied to such debt charges in compliance with such covenant.
(B) For the purposes of calculating the indirect debt limit, the debt charges on outstanding or proposed exempt obligations required to be taken into consideration in determining the indirect debt limit shall first be allocated to the computed amount of taxes in excess of the ten-mill limit that would result if ad valorem property taxes were levied to the full extent of the one per cent limit, and any balance of such debt charges shall be allocated to the ten-mill limit. This section does not enlarge the direct debt limits.
(C) Upon request of the bond issuing authority or the fiscal officer of a subdivision, the appropriate county auditor or county auditors shall promptly certify all data necessary to make the determinations under division (B) of this section and to ascertain the indirect debt limits, including, for each overlapping subdivision, the tax value and the true value in money of property on the general tax lists and duplicates of the subdivision, stated separately for each classification of property the tax value of which is determined by applying a different percentage to true value, the applicable debt charges, and such other data as is necessary for the purpose. For such purpose, the aggregate true value in money of each such classification of property may be determined by application of the appropriate mathematical factor to the aggregate tax value of such classification of property on the general tax lists and duplicates. The fiscal officer of each overlapping subdivision and the tax commissioner shall promptly provide to the county auditor such additional information as is needed by the county auditor to make the certification required by this division, including certification to the county auditor by each such fiscal officer as to the then exempt obligations of the subdivision. The certificate of the county auditor shall be conclusive as to the data therein set forth for the purposes of determining the indirect debt limit. The calculations and certifications provided for in this section relating to the one per cent limit need not be made or provided where the annual debt charges required to be taken into consideration in ascertaining the indirect debt limit will not exceed the ten-mill limit.
(D) A municipal corporation which has outstanding exempt obligations supported by municipal income taxes as provided in division (A)(5) of this section shall, to the extent necessary therefor, levy and continue to levy such income tax and apply the proceeds thereof in accordance with its covenants made in the issuance of such obligations, and to such extent such tax shall not be subject to diminution by initiative or referendum, or diminution by statute unless provision is made therein for an adequate substitute therefor, other than unvoted taxes on the general tax lists and duplicates, assigned by law to such purpose.
(E) If the tax budget or the official certificate of estimated resources of a subdivision shows that funds available for the purpose, including municipal income taxes under division (D) of this section, but excluding unvoted taxes within the ten-mill limit, will be insufficient to pay the debt charges on all outstanding obligations of the subdivision that have been shown as exempt obligations on any certificate by the fiscal officer delivered to the county auditor pursuant to division (C) of this section, whether or not qualifying as such in any subsequent certificate, sections 5705.31 and 5705.32 of the Revised Code shall be specially applied as follows with respect to the debt charges on such obligations:
(1) The amount of such debt charges and the debt charges on other unvoted general obligations of the subdivision, not otherwise provided for, shall be charged against the minimum levy of such subdivision provided pursuant to division (D) of section 5705.31 of the Revised Code to the full amount of such minimum levy, if necessary, without preserving to such subdivision any operating levy within the ten-mill limit;
(2) If the debt charges on such obligations, and on any other outstanding unvoted general obligations of the subdivision not otherwise provided for, exceed the minimum levy of such subdivision, there shall be levied millage upon the tax value of property on the general tax lists and duplicates of the subdivision in excess of the ten-mill limit, but within the one per cent limit as to any property, in such amounts as are necessary to make up such deficiency to the extent that such deficiency does not exceed the debt charges, not otherwise provided for, on the exempt obligations referred to in this division;
(3) Only if the debt charges on such exempt obligations of the subdivision are not fully provided for after application of divisions (E)(1) and (2) of this section, the balance of such debt charges shall be provided by adjustment of other minimum levies pursuant to division (D) of section 5705.31 of the Revised Code.
If the subdivision is a municipal corporation that by charter provides a tax-rate limitation pursuant to section 5705.18 of the Revised Code, divisions (E)(1), (2), and (3) of this section shall be applied only in a manner consistent with the applicable charter provisions. If a levy for current operating expenses, whether or not part of a levy for other purposes, is to be provided under such charter in lieu of a minimum levy provided by division (D) of section 5705.31 of the Revised Code, as a first step, such charter levy shall be reduced by the amount of the levy for debt charges on such exempt obligations only if and to the extent provided by such charter, and if no part of such debt charges is to be paid from a levy within the limitations imposed by the charter, the full amount of such debt charges shall be considered the deficiency under division (E)(2) of this section. The levy for such debt charges under such subdivision shall not exceed any applicable charter limitation. Any references in applicable charter provisions to the limitations provided by the constitution or laws or to a ten-mill limitation of Section 2, Article XII, Ohio Constitution, shall be viewed by the county budget commission as meaning the one per cent limit applicable under this section. Division (E)(3) of this section shall not be applied to reduce any levy within a charter tax-rate limitation.
This section does not alter the right of holders of exempt obligations to share equally in taxes levied within the ten-mill limit nor the general obligation character of such exempt obligations, and the full faith and credit of the subdivision is pledged thereto.
(F) If any levy is made under division (E)(2) of this section, the amount of millage to be applied to tax values on the general tax lists and duplicates shall be determined for each classification of property the tax value of which is computed by applying a different percentage to true value. The millage rates applied to such classifications of property shall be calculated to produce revenues in the aggregate amount to be provided under division (E)(2) of this section, provided that no such millage shall be added to the taxes on property that is already taxed to the full extent of the one per cent limit, and the millage on each other classification of property shall not result in a tax thereon in excess of the one per cent limit, but the millage amount levied under division (E)(2) of this section shall be the same as to all classifications of property which may be taxed at the same millage without exceeding the one per cent limit. In any event, the millage amount levied under division (E)(2) of this section on all land and improvements thereon in the subdivision shall be the same.
(G) Nothing in this section shall be applied to impair the authority of a municipal corporation under section 5705.18 of the Revised Code. Levies which are authorized by the charter of a municipal corporation without necessity for further vote and which are available for debt charges shall continue to be treated as levies outside the ten-mill limit and outside the one per cent limit in determining the indirect debt limit.
Structure Ohio Revised Code
Section 5705.01 | Tax Levy Law Definitions.
Section 5705.02 | Ten-Mill Limitation.
Section 5705.03 | Authorization to Levy Taxes - Collection.
Section 5705.04 | Division of Taxes Levied.
Section 5705.05 | Purpose and Intent of General Levy for Current Expenses.
Section 5705.06 | Special Levies Without Vote of the People Within Ten-Mill Limitation.
Section 5705.07 | Levies in Excess of Ten-Mill Limitation.
Section 5705.08 | Certification by Fiscal Officer.
Section 5705.09 | Establishment of Funds.
Section 5705.10 | Use of Revenues.
Section 5705.11 | Distribution of Revenue Derived From Federal Government.
Section 5705.12 | Approval to Establish Special Funds.
Section 5705.121 | Other Special Funds.
Section 5705.13 | Reserve Balance Accounts - Special Revenue Fund - Capital Projects Fund.
Section 5705.131 | Nonexpendable Trust Fund.
Section 5705.132 | Reserve Balance Account for Other Purposes.
Section 5705.14 | Transfer of Funds.
Section 5705.15 | Transfer of Public Funds - Exceptions.
Section 5705.18 | Charter Prevails Over Ten-Mill Limitation - Calculation of Tax Rate.
Section 5705.19 | Resolution Relative to Tax Levy in Excess of Ten-Mill Limitation.
Section 5705.192 | Replacement Levies.
Section 5705.194 | Levy in Excess of Ten-Mill Limitation - Schools.
Section 5705.195 | Calculation of Millage and Years School Levy Shall Run.
Section 5705.196 | Submitting School Levy to Electors.
Section 5705.197 | Form of Ballot.
Section 5705.198 | Tax Levy by Joint Recreation District.
Section 5705.199 | School Levy in Excess of Ten-Mill Limitation.
Section 5705.20 | Special Levy for Tuberculosis Treatment or Clinics.
Section 5705.21 | Special Election on Additional School District Levy.
Section 5705.212 | School Levy of Up to Five Incremental Taxes.
Section 5705.213 | Special School District Election on Levy for Current Expenses - Renewal Levy.
Section 5705.214 | Frequency of School District Elections.
Section 5705.215 | County School Financing District Levy.
Section 5705.216 | Issuing Additional Anticipation Notes for School Purposes.
Section 5705.217 | Holding Special Elections on Additional Tax for School District Purposes.
Section 5705.2110 | Certification of Tax Amount.
Section 5705.2111 | Proposal for Levy in Excess of Limitation.
Section 5705.22 | Additional Levy for County Hospitals.
Section 5705.221 | Additional Levy for County Alcohol, Drug Addiction, and Mental Health Programs.
Section 5705.222 | Additional Levy for County Developmental Disabilities Programs.
Section 5705.23 | Special Levy for Public Library - Resolution - Submission to Electors.
Section 5705.24 | County Tax Levy for Support of Children Services.
Section 5705.25 | Submission of Proposed Levy - Notice of Election - Form of Ballot - Certification.
Section 5705.251 | Election on Incremental Taxes for Schools.
Section 5705.252 | Election on Transportation Services.
Section 5705.26 | Majority Vote Necessary for Levies.
Section 5705.27 | County Budget Commission.
Section 5705.28 | Adoption of Tax Budget - Procedure for Participation by Public Library Trustees.
Section 5705.281 | Waiving Requirement of Adoption of Tax Budget.
Section 5705.29 | Contents of Tax Budget - Contingency Reserve Balance - Spending Reserve.
Section 5705.30 | Public Inspection of Budget - Hearing - Notice - Submission to County Auditor.
Section 5705.31 | Approval of Levies by Budget Commission - Minimum Levy.
Section 5705.311 | Application of Levy to Annexed Territory.
Section 5705.312 | Increasing Minimum Levy to Pay Debt Service.
Section 5705.313 | Permitting Property Tax Rate Reduction When County Sales Tax Increased.
Section 5705.314 | Conducting Public Hearing on Proposed School Levy.
Section 5705.315 | Effect of Annexation on Minimum Municipal and Township Levies.
Section 5705.321 | Alternative Method of Apportionment.
Section 5705.33 | Reduction of Operating Levy.
Section 5705.34 | Certification of Tax Levy - Revision of Budget.
Section 5705.341 | Right of Appeal.
Section 5705.35 | Contents of Certification.
Section 5705.37 | Appeal to Board of Tax Appeals.
Section 5705.38 | Annual Appropriation Measures - Classification.
Section 5705.39 | Appropriations Limited by Estimated Revenue.
Section 5705.391 | Board of Education Spending Plan.
Section 5705.392 | County Spending Plan.
Section 5705.411 | Anticipated Proceeds From Levy for Permanent Improvement Are Deemed Appropriated.
Section 5705.412 | Certificate of Revenue Required for School District Expenditures.
Section 5705.42 | Grants by United States Government.
Section 5705.43 | Improvements Paid by Special Assessments.
Section 5705.45 | Liability for Wrongful Payments From Public Funds - Enforcement.
Section 5705.46 | Payment of Current Payrolls.
Section 5705.47 | Existing Actions or Proceedings.
Section 5705.48 | Joint Budget Commission - Adjustment of Tax Rate.
Section 5705.49 | Subdivision's Power to Tax - Limitation.
Section 5705.50 | Subdivisions May Expend Local Funds for Real Property Inventory.
Section 5705.51 | Indirect Debt Limitation.
Section 5705.62 | Payment of Tax.
Section 5705.63 | Distributing Tax Revenue.
Section 5705.71 | County Levy for Senior Citizens Services or Facilities.
Section 5705.72 | Levy of Tax in Excess of Limitation for Transportation Services.