Three levies are on the ballot for Hamilton County voters during the upcoming May primaries.
State law allows for citizens to vote on such tax increases, but the language around them can sometimes be confusing. Cutting through the legalese around these topics is important and helps make sure voters know what they’re voting for or against.
What is a mill?
It’s not one of those water-wheel things, that’s for sure.
Mill — or millage — comes from the Latin phrase per mille, something measured in parts per thousand. In the United States, a mill is a type of property tax that uses the parts-per-thousand formula to determine a “millage rate.”
That rate can be understood as a tax introduced for every one thousand dollars in property value. Hamilton County’s general fund millage rate, for instance, is 2.26 mills per $1,000 of assessed value; or 0.226% of the total value. So, if you have a $100,000 house, the county general fund tax would then be $226.00.
Inside, outside and effective Mills
In Ohio, there are legislatively two types of mills: “inside” and “outside.” Inside mills must be under 1% (10 mills) of total assessed property value, and don’t have to be approved by voters.
Outside mills, on the other hand, must be put on the ballot and approved.
Some outside mills are also described as “effective.” An effective mill is one that has been subject to the property tax reduction factor, which was introduced in 1976 to keep the cost of property stable. Part of keeping that stable is keeping property tax rates down — the reduction factor does this by keeping taxation in a static state when new school funding legislation is passed or approved. Naturally, the resulting tax revenue is likely much lower than originally voted on.
The 20-mill floor
Public schools are widely considered an essential service; and as such, their funding is a vital resource. In 1977, the state government agreed and created a so-called “millage floor.”
“The 20-mill floor guarantees that each city, local and exempted village school district receives at least 20 mills worth of taxes for current expenses after the tax reduction factor is applied,” attorney Mackenzie Damon wrote for the Ohio Legislative Service Commission.
According to Damon, 477 of Ohio’s 611 school districts met the 20-mill floor as of 2024. 299 of those were rural, where the average voted for millage rate was 35.90 (3.59%). With the 20-mill floor in place, however, only 15.90 (1.59%) of that funding is affected by the property tax reduction factor. Damon found that some school districts could save as much as $40,000 dollars if they participated.
What is a levy?
It’s not one of those dam-like things, that’s for sure.
According to the Ohio School Board Association, “A property tax levy is the collection of taxes charged on the value of property. Each district must follow a process described in Ohio law in order for taxes to be levied on property within the district.”
That process includes a chance for residents of the taxable district to vote on a ballot initiative to approve or deny the levy, which means it’s also affected by the property tax reduction factor. These levies can serve a number of purposes, from covering operating expenses to emergencies, and classroom technology to new construction.
A levy is usually active for a maximum of 10 years before needing to be either renewed or replaced by another proposal. Cities and other local taxing authorities can also attempt to pass levies.
Upcoming Levies
As previously mentioned, voters across Hamilton County are looking at three levy proposals on the May primary ballot.
The Southwest Local School District, which includes the towns of Harrison and New Haven, has proposed a 4 mills (0.4%) tax levy for current expenses. The school district famously has the second lowest tax rate in the county, and predicts that the levy will bring in $4.26 million over five years.
The city of Reading has a 5.89 mills (0.589%) levy ballot initiative that will go towards building and improving city facilities. According to the city, the projects should cost between $25 and $27 million; while the levy is expected to last 28 years.
Finally, Delhi Township has a 3.2 mills (0.32%) levy on the ballot to continue providing emergency fire and medical services to the city of almost thirty thousand residents. Delhi Township Fire Chief Douglas Campbell hopes to see an additional revenue of $3.2 million from the measure. The operations had previously been working under a 1.99 (0.199%) mill levy, but that had left the services in a deficit.