The 6.9 mill operating levy approved for the ballot by the Twinsburg Board of Education is Issue #15. The levy is estimated to generate $5.65 million a year in property tax. This revenue will be used to replace revenue lost due to the phase out of the business tax known as Tangible Personal Property Tax.
In Ohio, HB66 is legislation eliminating the tax businesses pay on Tangible Personal Property. The original legislation set forth that the State would reimburse districts for five years the amount of lost revenues. Shortly thereafter, the State would incrementally eliminate this reimbursement.
A tax once under local/county control has been eliminated and replaced by a State collected Commercial Activity Tax. The State’s current biennium budget changes, for the fourth time, the laws governing the loss of TPP/CAT and eventually permits the State to keep all of this revenue.
The result is that Twinsburg City School District will lose approximately $9.8 million (23% of the current budget) and will be faced with a fiscal emergency.