An Ohio township places a 5-year, 3-mill road improvement levy on the ballot. The levy passes. Under House Bill 920, what happens to the effective tax rate of this levy when property values increase at the next triennial update?
Correct Answer
B) The effective rate is reduced so the levy collects approximately the same total revenue
Under House Bill 920 (ORC §319.301), when property values increase due to reappraisal or triennial update, the effective tax rate on voted levies is reduced (using tax reduction factors) so that the levy generates approximately the same amount of revenue as when it was originally approved. This prevents windfall revenue increases from rising property values.
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