School District Data
School District Income Tax Distributions for Fiscal Year 2013
Table SD-2-Q1 shows the first quarterly distribution of school district income tax to school districts during the fiscal year 2013. Payments are made by the Ohio Department of Taxation at the end of the month following the end of a calendar quarter. For the first quarterly payment in fiscal year 2013, a total of $121.4 million was distributed to 189 school districts (this includes 7 districts that received distributions although the tax had already expired).
Pickerington Local School District in Fairfield County received the largest amount ($4,983,131). The smallest distribution for districts with an existing tax went to Bettsville Local School District in Seneca County ($53,972).
In 1989, the legislature enacted Senate Bill 28, reauthorizing the use of local income taxes for school districts. Under the traditional base, the school district income tax is closely tied to the state income tax, having an identical tax base. However, with the passage of House Bill 66 (State Operating Budget for fiscal years 2006 – 2007) in the 126th General Assembly, school districts are now authorized to levy the tax, subject to voter approval, on an alternate tax base that includes only earned income and self-employment income (including income from partnerships) of the residents of the school district. The tax is paid by residents of the district, regardless of where they work. Non-residents working in the district and corporations are not taxed.
The taxes are collected by the state in the same manner as the state income tax: through quarterly estimated payments, annual returns or withholding. Employers remit withholding tax either monthly or quarterly. Employers who pay on a partial weekly schedule for state purposes pay monthly for school district purposes. The state retains 1.50 percent of collections to cover administrative expenses.