Payment for School Districts with Decreases in Utility Tangible Personal Property Value
H.B. 164 requires the Ohio Department of Education (ODE) to make a payment, for fiscal year 2020 and 2021, to each school district with more than a 10% decrease in the taxable value of utility tangible personal property (TPP) subject to taxation, which has at least one power plant located within its territory.
To qualify for the fiscal year 2020 payment, a district must have experienced this decrease between tax years 2017 and 2019, tax years 2018 and 2019, or tax years 2017 and 2018. To qualify for the fiscal year 2021 payment, a district must have experienced this decrease between tax years 2017 and 2020 or tax years 2019 and 2020.
Tax Commissioner’s Eligibility Determination and Payment Formulas
Under H.B. 164, the Tax Commissioner must determine which school districts are eligible for this payment no later than ten days after the bill’s effective date (for the fiscal year 2020 payment) or May 15, 2021 (for the fiscal year 2021 payment) and must further certify certain specific information to the ODE regarding tax valuations for each school district that is eligible for the payment. Additionally, H.B. 164 establishes detailed and precise formulas by which the ODE calculates a school district’s payment under these provisions.
Deadline for Payment
H.B. 164 requires the ODE to make fiscal year 2020 payments no later than 14 days after the bill’s effective date and to make fiscal year 2021 payments between June 1, 2021, and June 30, 2021.
Funding Adjustment for Districts with Increases in Utility TPP Value
Likewise, the bill specifies that, if a school district experienced an increase in the taxable value of all utility TPP subject to taxation by the district between tax years 2016 and 2017 and, as a result, had funds deducted from its state education aid, the ODE must credit the deducted amount to the district no later than ten days after the bill’s effective date.
Additional Payment for School Districts for Fiscal Year 2020
H.B. 164 requires the ODE to make an additional payment to each school district that receives, for fiscal year 2020, a combined amount of foundation funding after state budget reductions in accordance with the Governor’s order and funding from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act that is less than 94% of its foundation funding for fiscal year 2020 as calculated before state budget reductions.
The bill also explains that the amount of this payment is equal to the difference between (1) 94% of the district’s foundation funding for fiscal year 2020 as calculated before state budget reductions and (2) the combined amount of foundation funding after state budget reductions in accordance with the Governor’s order and funding from the federal CARES Act.