Tax Data Series

SCHOOL DISTRICT INCOME TAX: School District Income Tax Distributions Quarterly Report, Fiscal Year 2018

Table SD-2-Q2 shows quarterly distributions of school district income taxes to school districts during the second quarter of fiscal year 2018. Payments are made by the Department of Taxation at the end of the month following the end of the calendar quarter.  For the second quarterly payment of fiscal year 2018, a total of $92.5 million was distributed to 191 school districts with a current tax in effect (excluding all that have expired or merged into other districts). The current fiscal year to date distribution total was $240.3 million.

Pickerington Local School District in Fairfield County received the largest amount ($3,564,593). The smallest distribution went to Crestline Exempted Village School District in Crawford County ($40,531).

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 not taxed.

The taxes are collected by the state in the same manner as the state income tax: through quarterly estimated payments, annual returns and withholding.  Employers remit withholding either monthly or quarterly.  Employers who pay partial weekly for state purposes pay monthly for school district purposes.  The state retains 1.50 percent of collections to cover administrative expenses.