HB 422: Enact Taxpayers Freedom Trilogy-Act III: Triumph of the Taxpayer

Section 1.

That sections $345.02, 511.07, 757.02$, and 8 3318.06 be amended and section 5705.171 of the Revised Code be 9 enacted to read as follows: 10

Sec. 345.02.

The taxing authority of any municipal 11 corporation, township, or county may issue the bonds of such 12 subdivision for the purpose of purchasing a site, and for 13 erecting, equipping, and furnishing, or for establishing a 14 memorial to commemorate the services of all members and veterans 15 of the armed forces of the United States. Any such taxing 16 authority may determine to submit to the electors of the 17 subdivision the question of issuing such bonds make the 18 declarations and statements required by section 133.18 of the 19 Revised Code. The county auditor and taxing authority shall 20 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 ..... 51approval of the Ohio facilities construction commission, the52 school district board by a majority of all of its members shall, ..... 53 if it desires to proceed with the project, declare all of the ..... 54 following by resolution:

1. That by issuing bonds in an amount equal to the school ..... 56 district's portion of the basic project cost the district is ..... 57 unable to provide adequate classroom facilities without ..... 58 assistance from the state;
2. Unless the school district board has resolved to ..... 60 transfer money in accordance with section 3318.051 of the ..... 61 Revised Code or to apply the proceeds of a property tax or the ..... 62 proceeds of an income tax, or a combination of proceeds from ..... 63 such taxes, as authorized under section 3318.052 of the Revised ..... 64 Code, that to qualify for such state assistance it is necessary ..... 65 to do either of the following:
   1. (a) Levy a tax outside the ten-mill limitation the ..... 67 proceeds of which shall be used to pay the cost of maintaining ..... 68 and upgrading the classroom facilities included in the project. ..... 69 The use of the proceeds for upgrades is subject to the approval ..... 70 by the commission under division (E) of section 3318.05 of the ..... 71 Revised Code.
   2. (b) Earmark for maintenance of classroom facilities from ..... 73 the proceeds of an existing permanent improvement tax levied ..... 74 under section 5705.21 of the Revised Code, if such tax can be ..... 75 used for maintenance, an amount equivalent to the amount of the ..... 76 additional tax otherwise required under this section and ..... 77 sections 3318.05 and 3318.08 of the Revised Code.
3. That the question of any tax levy specified in a ..... 79 resolution described in division (A) (2) (a) of this section, if ..... 80 required, shall be submitted to the electors of the school ..... 81 district at the next general or primary election, if there be a ..... 82 general or primary election not less than ninety and not more ..... 83 than one hundred ten days after the day of the adoption of such ..... 84 resolution or, if not, at a special election to be held at a ..... 85 time specified in the resolution which shall be not less than ..... 86 ninety days after the day of the adoption of the resolution and ..... 87 which shall be in accordance with the requirements of section ..... 88 3501.01 of the Revised Code.

Such resolution shall also state that the question of ..... 90 issuing bonds of the board shall be combined in a single ..... 91 proposal with the question of such tax levy. More than one ..... 92 election under this section may be held in any one calendar ..... 93 year. Such resolution shall specify both of the following: ..... 94

1. (a) That the rate which it is necessary to levy shall be ..... 95 at the rate of not less than one-half mill for each one dollar ..... 96 of taxable value, and that such tax shall be levied for a period ..... 97 of twenty-three years; ..... 98
2. (b) That the proceeds of the tax shall be used to pay the ..... 99 cost of maintaining the classroom facilities included in the ..... 100 project or upgrading those facilities if approved by the ..... 101 commission. ..... 102

(B) A copy of a resolution adopted under division (A) of ..... 103 this section shall after its passage and not less than ninety ..... 104 days prior to the date set therein for the election be certified ..... 105 to the county board of elections. ..... 106 The resolution of the school district board, in addition ..... 107 to meeting other applicable requirements of section 133.18 of ..... 108 the Revised Code, shall state that the amount of bonds to be 109 issued will be an amount equal to the school district's portion 110 of the basic project cost, and state the maximum maturity of the 111 bonds which may be any number of years not exceeding the term 112 calculated under section 133.20 of the Revised Code as 113 determined by the board. In estimating the amount of bonds to be 114 issued, the board shall take into consideration the amount of 115 moneys then in the bond retirement fund and the amount of moneys 116 to be collected for and disbursed from the bond retirement fund 117 during the remainder of the year in which the resolution of 118 necessity is adopted.

If the bonds are to be issued in more than one series, the 120 resolution may state, in addition to the information required to 121 be stated under division (B) (3) of section 133.18 of the Revised 122 Code, the number of series, which shall not exceed five, the 123 principal amount of each series, and the approximate date each 124 series will be issued, and may provide that no series, or any 125 portion thereof, may be issued before such date. Upon such a 126 resolution being certified to the county auditor as required by 127 division (C) of section 133.18 of the Revised Code, the county 128 auditor, in calculating, advising, and confirming the estimated 129 average annual property tax levy under that division, shall also 130 calculate, advise, and confirm by certification the estimated 131 average property tax levy for each series of bonds to be issued.

Notice of the election shall include the fact that the tax 133 levy shall be at the rate of not less than one-half mill for 134 each one dollar of taxable value for a period of twenty-three 135 years, and that the proceeds of the tax shall be used to pay the 136 cost of maintaining or upgrading the classroom facilities 137 included in the project. The notice shall also express the rate 138 in dollars for each one hundred thousand dollars of the county 139 auditor's appraised value and the county auditor's estimate of ..... 140 the amount the tax levy is estimated to collect for each tax ..... 141 year it is levied, as certified pursuant to section 5705.03 of ..... 142 the Revised Code.

If the bonds are to be issued in more than one series, the ..... 144 board of education, when filing copies of the resolution with ..... 145 the board of elections as required by division (D) of section ..... 146 133.18 of the Revised Code, may direct the board of elections to ..... 147 include in the notice of election the principal amount and ..... 148 approximate date of each series, the maximum number of years ..... 149 over which the principal of each series may be paid, the ..... 150 estimated additional average property tax levy for each series, ..... 151 and the first calendar year in which the tax is expected to be ..... 152 due for each series, in addition to the information required to ..... 153 be stated in the notice under divisions (E) (3) (a), (b), (c), ..... 154 (e), and (f) of section 133.18 of the Revised Code.

(C) (1) Except as otherwise provided in division (C) (2) of ..... 156 this section, the form of the ballot to be used at such election ..... 157 shall be:

(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.

H. B. No. 422

As Introduced

(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:

Where it is necessary to combine the question of issuing ..... 233 bonds of the school district and levying a tax as described in ..... 234 division (B) of this section with the question of issuing bonds ..... 235 of the school district for acquisition of a site, the question ..... 236 specified in that division to be voted on shall be "For the Bond ..... 237 Issues and the Tax Levy" and "Against the Bond Issues and the ..... 238 Tax Levy." ..... 239 Where it is necessary to combine the question of issuing ..... 240 bonds of the school district and levying a tax as described in ..... 241 division (B) of this section with the question of levying a tax ..... 242 for the acquisition of a site, the question specified in that ..... 243 division to be voted on shall be "For the Bond Issue and the Tax ..... 244 Levies" and "Against the Bond Issue and the Tax Levies." ..... 245 Where the school district board chooses to combine the ..... 246 question in division (B) of this section with any of the ..... 247 additional questions described in divisions (A) to (D) of ..... 248 section 3318.056 of the Revised Code, the question specified in ..... 249 division (B) of this section to be voted on shall be "For the ..... 250 Bond Issues and the Tax Levies" and "Against the Bond Issues and ..... 251 the Tax Levies." ..... 252 If a majority of those voting upon a proposition hereunder ..... 253 which includes the question of issuing bonds vote in favor ..... 254 thereof, and if the agreement provided for by section 3318.08 of ..... 255 the Revised Code has been entered into, the school district 256 board may proceed under Chapter 133. of the Revised Code, with 257 the issuance of bonds or bond anticipation notes in accordance 258 with the terms of the agreement. 259

Sec. 5705.171.

(A) As used in this section, "voted tax" 260 means a tax levy authorized under any section of the Revised 261 Code that is in excess of the ten-mill limitation and subject to 262 approval by electors.

(B) Notwithstanding any other section of the Revised Code 264 to the contrary:

1. (1) No voted tax shall be levied unless approved by the 266 following percentage of electors of the taxing unit proposing 267 the levy:
   1. (a) For levies with an aggregate rate of not more than one 269 mill, fifty per cent:
   2. (b) For levies with an aggregate rate of more than one 271 mill but not more than two mills, sixty per cent:
   3. (c) For levies with an aggregate rate of more than two 273 mills, sixty-six per cent.

   As used in the context of voted taxes in the Revised Code, 275 a "majority" of such electors means the applicable percentage of 276 such electors required under division (B) (1) of this section. 277 For voted taxes levied at whatever rate is required to produce a 278 specified amount of tax money, the percentage of such electors 279 required shall be based on the estimated millage for the levy as 280 appearing in the ballot language. For voted taxes levied under 281 section 5705.212 of the Revised Code, the percentage of such 282 electors required shall be based on the aggregate rate of the 283 original tax and each incremental tax.

2. (2) If additional territory would be added to the ..... 285 territory of the taxing unit that would extend a voted tax to ..... 286 that territory, that territory shall not be added unless the ..... 287 question to add that territory is approved by the applicable ..... 288 percentage of electors of the taxing unit or the portion of the ..... 289 taxing unit required by law to approve the expansion under ..... 290 division (B) (1) of this section, based on the millage of the ..... 291 voted tax that would be extended to that territory. ..... 292