H.B 920 Explained...
Doesn’t the school get more money from the recent increase in house values?
Ohio has a law, known as H.B. 920. that keeps school tax collection flat.
As property values go up, the voted tax rate goes down, so the total amount collected by the school district on an existing levy stays the same.
…but I know I paid more tax as a result of my house value going up. Where does that money go?
The voted tax rate is adjusted based on the total dollars the tax will generate. You might pay more if your house went up more than the average. Similarly, someone whose house went up less than the average will pay less. The combination means the school still gets the same amount.
Real World Example: The last operating tax passed by Kettering City Schools was in 2013 and passed for 4.89 mills. Today, taxpayers only pay 4.46 mills on that levy. Ohio’s law has reduced the tax rate from 4.89 mills to 4.46 mills, based on the increase of values, so that the amount the school gets stays the same.
In addition, property taxes that residents living in Montgomery County pay also support the Dayton Metro Library System, The Montgomery County Human Services Levy, Sinclair Community College and Five Rivers Metro Parks, all of which affects the annual total amount of property taxes that residents pay.
Doesn’t the school benefit somehow from property values going up?
The “inside tax rate,” or the rate that is not voted on by the community, is applied to the new values. The inside tax goes up $2 a year for every $100,000 of increased property valuation. While it is helpful, the most recent increase in property values for Kettering properties will generate LESS than ½ of 1% of revenue after three years of property growth.