Description and Purpose of Levies/Property Taxes

School districts rely on property tax levies as a key local funding source in addition to state and federal funding. The mix of levies used depends on each district's specific financial situation and facility needs. 

A levy is a tax that is authorized and approved by the voters within a school district. When voters approve a tax levy, they are authorizing the school district to collect a specified amount of additional property taxes for school funding purposes.

The four main types of property tax levies that school districts in Ohio can use to raise funds are:

1. Operating levies - These levies provide funds for the day-to-day operations of the school district, such as salaries, utilities, supplies, etc. The funds go into the district's general fund to pay for operating expenses. Operating levies can be term-limited or continuing (permanent).
2. Emergency levies - These are a type of operating levy but for a specific dollar amount and a limited time period, usually 5-10 years. The dollar amount stays constant even if property values increase. Emergency levies are frequently used when a district has an urgent need for additional operating funds. 
3. Bond levies - Bond levies provide funds for specific capital improvements, such as new school construction, building renovations, land acquisition, etc. The levy funds are used to pay off bonds that are sold to generate the money for the capital projects upfront. Bond levies have a specific time limit for how long the tax is collected.
4. Permanent improvement levies - These levies provide funds for maintaining, repairing and improving school facilities and equipment. By law, they cannot be used for salaries. Permanent improvement levies can be term-limited or continuing. The tax rate stays the same but revenue can grow as property values increase.

Levies are used by school districts to generate local revenue to support the education of students in the district. School levies are typically placed on the ballot during an election and must be approved by a majority vote. The ballot language specifies the purpose, amount, and duration of the levy. If approved, the levy results in an increase in the property taxes paid by homeowners and property owners within the school district boundaries. The ability to raise local tax revenue through levies is an important part of the school funding system in many states.