For those living in the Willoughby-Eastlake School district, you will again get to vote on another property tax levy on the March 17, 2020 ballot. The property tax will commence in 2020 with the collection in 2021.
If it does not pass, in our opinion, the taxpayers are sending a huge message to the Superintendent and the entire school board that they no longer have confidence in them to be good stewards of the taxpayers’ money.
Just remember property tax levies for public schools will ALWAYS increase since their expenditures NEVER go down.
Here is the resolution passed by the W-E School Board: 2020 W-E School Levy
Here are some pertinent facts about the levy:
1. Emergency Levy
2. Additional Tax
3. Will raise $8,500,000 each year in new property taxes.
4. The tax will be collected for a period of 10 years.
5. The tax to be paid by the taxpayer is 49.4 cents per $100 of valuation.
6. Total tax valuation of the (political) sub-division in calculating the estimated property tax revenue is $1,721,628,730.
Here are the formulas you can use to double check their numbers:
[$1,721,628,730 / $100 = $17,216,387.30 x .494 = $8,504,895.32]
The Auditor’s number: [$8,500,000 / (($1,721,628,730 / $100) = $0.494]
What does this mean for the average taxpayer?
Item number 5 above is written as required by the Ohio Revised Code. It is confusing to the taxpayer, and, in our opinion, is meant to be that way. We call it a deception.
We have been told that for the past 15 years legislators have been trying to simplify the ballot language, but have been thwarted by the school lobbyists (paid by taxpayers’ property tax funds given to schools, and through union dues). Here is a prior article we wrote about this issue.
Current State Representative John Rogers (District 60), who wants to be your next Lake County Commissioner, voted against legislation that would simplify the ballot language that would help the taxpayers better understand the issue. He is certainly not supporting the average taxpayer. We can only imagine what he would do as a Lake County Commissioner….YIKES!
State Rep. Jamie Callender (District 61) voted to approve the legislation that would simplify the ballot language.
This new tax will cost the W-E school district taxpayers $172.90 in additional property taxes each year for every $100,000 in property valuation. [$35.00 x 4.94 mills = $172.90]
For the purist in the audience, here is the full calculation:
[$100,000 x 35% = $35,000 assessed value x (4.94 / 1,000) = $172.90]
Here is a chart of the costs for homes valued from $100K to $500K. The Housing Affordability Threshold % [HAT%] is the additional annual income needed to pay the new annual tax – assuming the the homeowner is currently at the 30% threshold.
Market Value of Home New Annual Taxes 10 Year Tax Bill HAT @ 30%
$100,000 $172.90 $1,729,00 $ 576.33
$200,000 $345.80 $3,458.00 $1,152.66
$300,000 $518.70 $5,187.00 $1,729.00
$400,000 $691.60 $6,916.00 $2,305.33
$500,000 $864.50 $8,645.00 $2,881.66
From the State of Ohio website we captured these definitions:
“An emergency levy is a fixed-sum levy, enacted to generate a specific amount of revenue
in each year it is in effect. Fixed-sum levy rates are adjusted annually, up or down, to ensure the specified amount of revenue. Since emergency levies have this built in rate restriction, they are not subject to tax reduction factors (HB 920)”
(LFC Comment: Willoughby-Eastlake school district is the champion of the Emergency levy – everything is an emergency for them.)
Tax Reduction Factors:
“Tax reduction factors, in very simple terms, eliminate tax revenue that would otherwise
result from appreciating real property values (exceptions to this are discussed later). Reduction factors do not apply to inside levies.
It is because of these reduction factors that there are two classes of real property, residential and agricultural (Class I) and commercial and industrial (Class II). The logic behind this separation is that residential property has historically appreciated at a faster rate than commercial and industrial property, and so to neutralize the effects of appreciation on outside levies separate reduction factors are calculated for each class of
Reduction factors are applied to certain tax levies to calculate effective tax rates. Reduction factors decrease the tax rate as taxable values increase and increase the tax rate as taxable values decrease; however the effective rate cannot increase above the initial rate approved by voters.”