The Logan-Hocking Local Board of Education acted on January 10 2024 to retain the bond retirement tax millage at 1.35 mills. This was the recommendation of School District Treasurer Paul Shaw following the December 2023 recommendation of the Hocking County Budget Commission. As a result, the School District’s overall tax rate remains at the lowest it has been in at least twenty-three years. In 2001 it was 34.30 mills. Following the passage of the 2001 bond issue that built new schools, the rate went up to 39.00 mills for 2002. The current overall tax rate for the School District is 32.45 mills. (see the graph attached).
Yet many local taxpayers do not understand why their real estate taxes have been going up, not down as the school tax rate remains flat/has been decreasing in recent years.
Treasurer Shaw is quick to point out that the increase in taxes is not due to anything that the School District has done. He reminds the community that “…the last “operating tax levy” was approved by local taxpayers in 1981 – nearly unheard of in the State of Ohio for a district to go that long without asking for an increase in local taxes.”
The Treasurer also explains that the School District is at the “20 mill floor”. This is a complex concept, but essentially says that once voted tax levies have been reduced over time due to change in real estate values, they cannot be reduced anymore (below the 20 mill floor). As a result, as real estate values are adjusted due to state mandated revaluations/reappraisals, taxes can go up and down. “But this is not because of anything the School District has done – it is a result of current state law.” The School District is NOT involved in the real estate property valuation process.
Shaw also commented that not all of the local real estate taxes paid by taxpayers go to the School District. The Hocking County Auditor’s website can inform taxpayers of where their taxes are going. A recent viewing indicated that the taxpayer in question had 56% of their tax bill going to the School District. Shaw commented that years ago this was around 65%. The School District’s share has gone down. Other governmental entities receive the balance – county (10%), developmental disabilities (9%), EMS (5%), health department (2%), joint vocational school (4%), mental health (4%), senior center (2%), township (8%). Those who live in the City of Logan also have taxes real estate tax assessed as well for the City of Logan.
Unfortunately, it is true that local taxpayers are paying higher real estate taxes. The School District will receive an increase in local real estate taxes due to changes in assessed values and due to new construction. But recognizing this increase in “local wealth”, the State or Ohio will REDUCE its funding to the School District. The overall increase in school funding will not be as big as one might expect. It is a “shift” in funding from the State of Ohio to local taxpayers.
Note that in 2001 when the local bond issue was passed to build the new schools in the Logan-Hocking Local School District, the School District’s “wealth” based on values then was not as great. As a result, the State of Ohio provided 71% of the base cost. Local taxpayers voted to provide 29%. If we were to look at doing this today, local taxpayers would have to pay a much larger share of the construction projects. “The School District’s taxpayers are fortunate to have done this project in the past,” commented Treasurer Shaw. Treasurer Shaw has repeatedly referred to this over the years as “Divine Providence”.
Contact School District Treasurer Paul Shaw at pshaw@lhsd.k12.oh.us if you have any questions or concerns.
PFS
January 10, 2024
