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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 422
2025-2026
Representatives Click, Newman
Cosponsors: Representatives Willis,
Gross, Deeter
To
amend sections 345.02, 511.07, 757.02,
and
3318.06 and to enact section 5705.171 of the Revised Code
to
increase the approval threshold required for passage of certain
property taxes and to name this act the Taxpayers Freedom Trilogy –
Act Three: The Triumph of the Taxpayer.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 345.02, 511.07, 757.02,
and
3318.06 be amended and section 5705.171 of the Revised Code be
enacted to read as follows:
Sec.
345.02.
The
taxing authority of any municipal corporation, township, or county
may issue the bonds of such subdivision for the purpose of purchasing
a site, and for erecting, equipping, and furnishing, or for
establishing a memorial to commemorate the services of all members
and veterans of the armed forces of the United States. Any such
taxing authority may determine to submit to the electors of the
subdivision the question of issuing such bonds make the declarations
and statements required by section 133.18 of the Revised Code. The
county auditor and taxing authority shall thereupon proceed as set
forth in divisions (C) and (D) of such section. The election on the
question of issuing such bonds shall be held under divisions (E),
(F), and (G) of section 133.18 of the Revised Code.
Such bond issue shall require the affirmative vote of sixty per cent
of those electors voting upon the proposition.
Sec.
511.07.
If,
at an election under section 511.06 of the Revised Code,
two
thirds
a
majority
of
the electors of the township and of the village voting, vote in favor
of such improvement, the board of township trustees and the
legislative authority of the village shall jointly take such action
as is necessary to carry out complete improvement.
Sec.
757.02.
Upon
the filing of a petition as provided by section 757.01 of the Revised
Code, the taxing authority of the municipal corporation shall pass a
resolution providing for the submission of the question of levying a
tax as provided by such section at the next following municipal
election. A copy of such resolution shall be certified by the taxing
authority to the board of elections not less than ninety days before
the general election in any year in which a municipal election is
held, and such board shall submit the question to the electors of the
municipal corporation at the succeeding November election. Section
5705.25 of the Revised Code relating to the arrangements for and the
conduct of such election, publication thereof, and form of ballot
therefor, shall apply to such proposal to the electorate.
If
sixty-five
per cent
a
majority
of
the electors voting on such proposal at the election vote in favor
thereof, sections 5705.25 and 5705.26 of the Revised Code, shall
apply to the certification and levy of such additional tax.
Sec.
3318.06.
(A)
After receipt of the conditional approval of the Ohio facilities
construction commission, the school district board by a majority of
all of its members shall, if it desires to proceed with the project,
declare all of the following by resolution:
(1)
That by issuing bonds in an amount equal to the school district's
portion of the basic project cost the district is unable to provide
adequate classroom facilities without assistance from the state;
(2)
Unless the school district board has resolved to transfer money in
accordance with section 3318.051 of the Revised Code or to apply the
proceeds of a property tax or the proceeds of an income tax, or a
combination of proceeds from such taxes, as authorized under section
3318.052 of the Revised Code, that to qualify for such state
assistance it is necessary to do either of the following:
(a)
Levy a tax outside the ten-mill limitation the proceeds of which
shall be used to pay the cost of maintaining and upgrading the
classroom facilities included in the project. The use of the proceeds
for upgrades is subject to the approval by the commission under
division (E) of section 3318.05 of the Revised Code.
(b)
Earmark for maintenance of classroom facilities from the proceeds of
an existing permanent improvement tax levied under section 5705.21 of
the Revised Code, if such tax can be used for maintenance, an amount
equivalent to the amount of the additional tax otherwise required
under this section and sections 3318.05 and 3318.08 of the Revised
Code.
(3)
That the question of any tax levy specified in a resolution described
in division (A)(2)(a) of this section, if required, shall be
submitted to the electors of the school district at the next general
or primary election, if there be a general or primary election not
less than ninety and not more than one hundred ten days after the day
of the adoption of such resolution or, if not, at a special election
to be held at a time specified in the resolution which shall be not
less than ninety days after the day of the adoption of the resolution
and which shall be in accordance with the requirements of section
3501.01 of the Revised Code.
Such
resolution shall also state that the question of issuing bonds of the
board shall be combined in a single proposal with the question of
such tax levy. More than one election under this section may be held
in any one calendar year. Such resolution shall specify both of the
following:
(a)
That the rate which it is necessary to levy shall be at the rate of
not less than one-half mill for each one dollar of taxable value, and
that such tax shall be levied for a period of twenty-three years;
(b)
That the proceeds of the tax shall be used to pay the cost of
maintaining the classroom facilities included in the project or
upgrading those facilities if approved by the commission.
(B)
A copy of a resolution adopted under division (A) of this section
shall after its passage and not less than ninety days prior to the
date set therein for the election be certified to the county board of
elections.
The
resolution of the school district board, in addition to meeting other
applicable requirements of section 133.18 of the Revised Code, shall
state that the amount of bonds to be issued will be an amount equal
to the school district's portion of the basic project cost, and state
the maximum maturity of the bonds which may be any number of years
not exceeding the term calculated under section 133.20 of the Revised
Code as determined by the board. In estimating the amount of bonds to
be issued, the board shall take into consideration the amount of
moneys then in the bond retirement fund and the amount of moneys to
be collected for and disbursed from the bond retirement fund during
the remainder of the year in which the resolution of necessity is
adopted.
If
the bonds are to be issued in more than one series, the resolution
may state, in addition to the information required to be stated under
division (B)(3) of section 133.18 of the Revised Code, the number of
series, which shall not exceed five, the principal amount of each
series, and the approximate date each series will be issued, and may
provide that no series, or any portion thereof, may be issued before
such date. Upon such a resolution being certified to the county
auditor as required by division (C) of section 133.18 of the Revised
Code, the county auditor, in calculating, advising, and confirming
the estimated average annual property tax levy under that division,
shall also calculate, advise, and confirm by certification the
estimated average property tax levy for each series of bonds to be
issued.
Notice
of the election shall include the fact that the tax levy shall be at
the rate of not less than one-half mill for each one dollar of
taxable value for a period of twenty-three years, and that the
proceeds of the tax shall be used to pay the cost of maintaining or
upgrading the classroom facilities included in the project. The
notice shall also express the rate in dollars for each one hundred
thousand dollars of the county auditor's appraised value and the
county auditor's estimate of the amount the tax levy is estimated to
collect for each tax year it is levied, as certified pursuant to
section 5705.03 of the Revised Code.
If
the bonds are to be issued in more than one series, the board of
education, when filing copies of the resolution with the board of
elections as required by division (D) of section 133.18 of the
Revised Code, may direct the board of elections to include in the
notice of election the principal amount and approximate date of each
series, the maximum number of years over which the principal of each
series may be paid, the estimated additional average property tax
levy for each series, and the first calendar year in which the tax is
expected to be due for each series, in addition to the information
required to be stated in the notice under divisions (E)(3)(a), (b),
(c), (e), and (f) of section 133.18 of the Revised Code.
(C)(1)
Except as otherwise provided in division (C)(2) of this section, the
form of the ballot to be used at such election shall be:
"
A
majority affirmative vote is necessary for passage.
Shall
bonds be issued by the ____________ (here insert name of school
district) school district to pay the local share of school
construction under the State of Ohio Classroom Facilities Assistance
Program in the principal amount of $____________ (here insert
principal amount of the bond issue), to be repaid annually over a
maximum period of ____________ (here insert the maximum number of
years over which the principal of the bonds may be paid) years, and
an annual levy of property taxes be made outside the ten-mill
limitation, estimated by the county auditor to average over the
repayment period of the bond issue ____________ mills for each $1 of
taxable value, which amounts to $____________ for each $100,000 of
the county auditor's appraised value to pay the annual debt charges
on the bonds and to pay debt charges on any notes issued in
anticipation of the bonds?"
and,
unless the additional levy
of
taxes is not required pursuant
to
division (C) of section
3318.05
of the Revised Code,
"Shall
an additional levy of taxes be made for a period of twenty-three
years to benefit the ____________ (here insert name of school
district) school district, the proceeds of which shall be used to pay
the cost of maintaining (or upgrading if approved by the commission)
the classroom facilities included in the project, that the county
auditor estimates will collect $_____ annually, at the rate of
__________ (here insert the number of mills, which shall not be less
than one-half mill) mills for each $1 of taxable value, which amounts
to $________ for each $100,000 of the county auditor's appraised
value?
FOR
THE BOND ISSUE AND TAX LEVY
AGAINST
THE BOND ISSUE AND TAX LEVY
"
(2)
If authority is sought to issue bonds in more than one series and the
board of education so elects, the form of the ballot shall be as
prescribed in section 3318.062 of the Revised Code. If the board of
education elects the form of the ballot prescribed in that section,
it shall so state in the resolution adopted under this section.
(D)
If it is necessary for the school district to acquire a site for the
classroom facilities to be acquired pursuant to sections 3318.01 to
3318.20 of the Revised Code, the district board may propose either to
issue bonds of the board or to levy a tax to pay for the acquisition
of such site, and may combine the question of doing so with the
questions specified in division (B) of this section. Bonds issued
under this division for the purpose of acquiring a site are a general
obligation of the school district and are Chapter 133. securities.
The
form of that portion of the ballot to include the question of either
issuing bonds or levying a tax for site acquisition purposes shall be
one of the following:
(1)
"Shall bonds be issued by the ____________ (here insert name of
the school district) school district to pay costs of acquiring a site
for classroom facilities under the State of Ohio Classroom Facilities
Assistance Program in the principal amount of $__________ (here
insert principal amount of the bond issue), to be repaid annually
over a maximum period of __________ (here insert maximum number of
years over which the principal of the bonds may be paid) years, and
an annual levy of property taxes be made outside the ten-mill
limitation, estimated by the county auditor to average over the
repayment period of the bond issue __________ mills for each $1 of
taxable value, which amounts to $__________ for each $100,000 of the
county auditor's appraised value to pay the annual debt charges on
the bonds and to pay debt charges on any notes issued in anticipation
of the bonds?"
(2)
"Shall an additional levy of taxes outside the ten-mill
limitation be made for the benefit of the __________ (here insert
name of the school district) school district for the purpose of
acquiring a site for classroom facilities in the sum of $_________
(here insert annual amount the levy is to produce) estimated by the
county auditor to average ________ mills for each $1 of taxable
value, which amounts to $________ for each $100,000 of the county
auditor's appraised value, for a period of _________ (here insert
number of years the millage is to be imposed) years?"
Where
it is necessary to combine the question of issuing bonds of the
school district and levying a tax as described in division (B) of
this section with the question of issuing bonds of the school
district for acquisition of a site, the question specified in that
division to be voted on shall be "For the Bond Issues and the
Tax Levy" and "Against the Bond Issues and the Tax Levy."
Where
it is necessary to combine the question of issuing bonds of the
school district and levying a tax as described in division (B) of
this section with the question of levying a tax for the acquisition
of a site, the question specified in that division to be voted on
shall be "For the Bond Issue and the Tax Levies" and
"Against the Bond Issue and the Tax Levies."
Where
the school district board chooses to combine the question in division
(B) of this section with any of the additional questions described in
divisions (A) to (D) of section 3318.056 of the Revised Code, the
question specified in division (B) of this section to be voted on
shall be "For the Bond Issues and the Tax Levies" and
"Against the Bond Issues and the Tax Levies."
If
a majority of those voting upon a proposition hereunder which
includes the question of issuing bonds vote in favor thereof, and if
the agreement provided for by section 3318.08 of the Revised Code has
been entered into, the school district board may proceed under
Chapter 133. of the Revised Code, with the issuance of bonds or bond
anticipation notes in accordance with the terms of the agreement.
Sec.
5705.171.
(A)
As used in this section, "voted tax" means a tax levy
authorized under any section of the Revised Code that is in excess of
the ten-mill limitation and subject to approval by electors.
(B)
Notwithstanding any other section of the Revised Code to the
contrary:
(1)
No voted tax shall be levied unless approved by the following
percentage of electors of the taxing unit proposing the levy:
(a)
For levies with an aggregate rate of not more than one mill, fifty
per cent;
(b)
For levies with an aggregate rate of more than one mill but not more
than two mills, sixty per cent;
(c)
For levies with an aggregate rate of more than two mills, sixty-six
per cent.
As
used in the context of voted taxes in the Revised Code, a "majority"
of such electors means the applicable percentage of such electors
required under division (B)(1) of this section. For voted taxes
levied at whatever rate is required to produce a specified amount of
tax money, the percentage of such electors required shall be based on
the estimated millage for the levy as appearing in the ballot
language. For voted taxes levied under section 5705.212 of the
Revised Code, the percentage of such electors required shall be based
on the aggregate rate of the original tax and each incremental tax.
(2)
If additional territory would be added to the territory of the taxing
unit that would extend a voted tax to that territory, that territory
shall not be added unless the question to add that territory is
approved by the applicable percentage of electors of the taxing unit
or the portion of the taxing unit required by law to approve the
expansion under division (B)(1) of this section, based on the millage
of the voted tax that would be extended to that territory.
Section
2.
That
existing sections 345.02, 511.07, 757.02,
and
3318.06 of the Revised Code are hereby repealed.
Section
3.
This
act shall be known as the Taxpayers Freedom Trilogy – Act Three:
The Triumph of the Taxpayer.