The bill amends sections 319.301 and 5705.314 of the Revised Code to restrict school districts' ability to reallocate unvoted property tax millage and to include certain property and school district income taxes in the calculation of a school district's effective millage floor. Specifically, it introduces new definitions and calculations related to "current expense school district income tax" and "qualifying taxes charged and payable," which will now factor into the effective millage floor. The bill also clarifies the process for determining tax reductions and establishes new requirements for public hearings when school districts propose changes to their levies that would increase property taxes.

Additionally, the bill deletes existing definitions related to the "effective tax rate" and modifies the language regarding the board of education's authority to change levies within the ten-mill limitation. It mandates that if a school district intends to change its levy in a way that would increase property taxes, a public hearing must be held, with proper notice published in local newspapers. The amendments will take effect for tax years beginning on or after the effective date of the bill.

Statutes affected:
As Introduced: 319.301, 5705.314