School District Data
School District Income Tax
School District Income Tax Distributions, Quarterly Report,
Fiscal Year 2007
Table SD-2-Q4 shows four quarterly distributions of school
district income taxes to school districts during fiscal year
2007. Payments are made by the Ohio Department of Taxation at
the end of the month following the end of a calendar quarter.
For the fourth quarterly payment in fiscal year 2007, a total
of $57.4 million was distributed to 164 school districts.
The total distribution during fiscal year 2007 was $241.3
million. Pickerington Local School District in Fairfield
County received the largest amount for districts that
received four payments ($11,435,976). The smallest
distribution for districts with an existing tax for the
entire fiscal year went to Bettsville Local School District
in Seneca County ($194,289).
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 (Executive Budget for fiscal years 2006 – 2007) in the
126th General Assembly, school districts are now authorized
to levy the tax, subject to voter approval, against 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
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.