An Ohio county has total assessed property value of $2 billion. A school district with $800 million in assessed value passes a 5-mill operating levy. After HB 920 adjustments in a subsequent year, property values in the district increase by 20%. What is the new effective millage rate on this levy?
Correct Answer
D) 4.17 mills
Under HB 920, the levy must generate approximately the same revenue. Original revenue = $800M × 5/1000 = $4,000,000. New assessed value = $800M × 1.20 = $960M. New effective rate = $4,000,000 / $960,000,000 × 1000 = 4.17 mills.
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