Findlay City Schools Putting Income Tax Levy On Fall Ballot
The Findlay City Schools Board of Education approved an income tax levy for the fall ballot.
On November 5th, voters in the school district will decide whether to approve a 1 percent income tax levy for the purpose of paying current expenses.
The school district points out that it has not received any new operating funds for almost 20 years and property tax funds don’t go as far as they used to and it will see a reduction in state funding next school year.
Findlay City Schools says it will begin running a deficit this year and expects its cash balance to run negative in fiscal year 2026 if a levy isn’t passed.
The school board said this is the best mechanism to proceed to get new operating revenue into the district because it is earned income tax and it will grow with inflation and won’t be held flat like property tax. Get more details near the end of the board meeting below.
In 2020, the school district had three separate attempts at passing an operating levy rejected.
Below is the statement from the school district about the levy.
The Findlay City Schools Board of Education approved a resolution to proceed with a 1% earned income tax to be placed on the November 5, 2024 ballot.
This levy would generate operating funds, which are used for salaries, benefits, utilities, materials, repairs, and certain equipment. Funds generated from Permanent Improvements and Bonds issues are unable to be used towards those items covered by operating funds.
Currently, Findlay City Schools generates local revenue through property taxes alone, which does not provide inflationary growth. Due to HB 920, when a community’s property values increase, school districts only receive the amount at which the levy was passed. The district last received new operating funds from the community in 2004.
To create sustainability and consider the population changes within Findlay, the Board of Education has recommended an earned income tax levy. An earned income tax will only tax W-2 compensation or self-employment income that is subject to the self-employment tax. Income that is not taxed would include retirement income, Social Security income, IRA distributions, pensions, unemployment compensation, workers compensation, interest and dividends, capital gains, royalties, profit from rental activities, lottery winnings, distributive shares of profit from S Corporations, alimony received, and distributions from trusts and estates.
An earned income tax will fluctuate with the income of a community’s residents, and will lessen the burden on senior citizens. It spreads the tax amongst all who live within the district of Findlay City Schools and earn income.
Findlay City Schools Superintendent, Dr. Andy Hatton, said, “I am proud of the Board of Education for taking their time, working with an expert, doing the research, and landing on a decision that is fair to the taxpayers and could provide long-term stability.”