Property Tax Increases! UPDATED with Tax Term explanations

ANSWER:

Quick Answer: Income to the District is generally stagnant because the levies the school has are fixed-rate levies. Only new construction results in more income for the taxing district, not existing values rising.

The 20-mill floor will not impact anyone in the Milton-Union Exempted Village School District for the foreseeable future.

Long Answer: When taxes go up, like they did in the re-evaluation of 2023, each property tax levy may see additional funding - but it isn't guaranteed, it depends on the type of levy. It also depends on your situation, as there are tax reduction factors that offset the value increase sometimes.

Additionally (and most importantly), not all levies are the same. Inside Levies, fixed-sum levies, and fixed-rate levies are all different and collect differently. A great resource to learn more about Property Tax Levies in Ohio is the Ohio Department of Taxation here.

1. Inside Millage Levy - Your taxes are proportionate to the change in property value. These are mills that local governments / school districts are permitted to share without a vote of the people.

2. Fixed-Sum Levy - Value increases yield tax decreases while value decreases may yield tax rate increases. The intent is to keep the revenue generated by this levy constant.

3. Fixed-Rate Levy (this is the District) - If your value increases, your tax rate will actually decrease so that you do not see a change in the taxes paid. Only new construction will result in more income for the taxing district.

Current District Taxation (Go here for more details)

• Two(2) operating levies - 27.9 mills

  • 17 Mills

    • Approved - 2003, 2008, 2011, 2016, 2021

    • 5 Year; In 2021 it was made continuing

  • 10.9 mills

    • Approved - 2007, 2013, 2017, 2022

    • 5 Year; In 2022 it was made continuing

• Two (2) Permanent Improvement (PI) Levies

  • 3.9 Mill

    • Approved - 2005, 2010, 2015, 2020

    • 5 Year Levy - next approved 2025

  • 1.25% Earned Income Tax Levy

    • 92% to PI, 8% to Operations

    • Approved - 2008

    • Continuing

What is the 20 Mill Floor?

This is a challenging explanation, and there isn't a simple way to explain it, unfortunately. As property values increase, the millage required to bring in those dollars decreases so that the levy will bring in the same amount of money originally approved by the levy. These reductions in mills are known as reduction factors.

Operations Levies can be either inside or outside the 10-mill limitation. Inside operations levies are not subject to reduction factors. Outside current expense levies are generally subject to reduction factors UNLESS the school district's effective current millage rate (inside and outside combined) falls below 20 mills - which is known as the 20-mill floor.

If a District reaches the 20-mill floor, the millage will not decrease any further, which causes the District to see additional funding for all increases in valuation that occur after reaching the 20-mill floor. This situation results in increases in property taxes to residents.

Subject to the 20-mill Floor

• 17 mill - Operating - continuing

• 10.9 mill - Operating - continuing

Not Subject to the 20-mill Floor

• 3.9 mill - PI - 5 year levy

Information on your Situation

You can also look up your individual taxes at the Miami County Auditor's website here. If you put your address in, find your property, and scroll to the bottom of the property page, you will see a graph along with the breakdown of taxes paid. You will see a large majority of property taxes paid goes to the School District, but if you look at the breakdown before 2023 and after 2023, you will likely see that the portion going to the school has actually gone down - because the cost of the other levies went up, while the school levy costs stayed the same.

They also post a section that shows your tax rate AND effective rate!