Tax Data Series

SCHOOL DISTRICT INCOME TAX: School District Income Tax Distributions Quarterly Report, Fiscal Year 2019

Table SD-2-Q4 shows four quarterly distributions of school district income taxes to school districts during fiscal year 2019. 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 2019, a total of approximately $115.5 million was distributed to 197 school districts with taxes in effect. The largest fourth quarter distribution went to Pickerington Local School District (LSD) in Fairfield County at $4,340,031 while Crestline Exempted Village School District (EVSD) in Crawford County received the lowest distribution of $58,888 for districts with an existing tax for the entire fiscal year.

The total distribution during fiscal year 2019 was approximately $461.2 million. Again, Pickerington LSD received the largest amount for districts that received four payments ($18,871,970) while Crestline EVSD ($211,271) received the lowest distribution for districts with an existing tax for the entire fiscal year.

The authority for school districts to levy an income tax dates to 1979 when the Ohio General Assembly permitted such a tax solely to repay a state loan. Two years later, lawmakers repealed this law which had not been used, and enacted Chapter 5748, granting broader authority for school districts to levy an income tax, subject to voter approval. In 1983, after voters in six districts approved such taxes, the legislature blocked other districts from enacting new income taxes by repealing most of the chapter. The ability of a school district to enact an income tax was restored in 1989.

There are two types of tax bases for the SDIT, the traditional tax base and the earned income tax base, each district’s base depends on the enacting ballot language. See Ohio Revised Code 5748.01 for complete information. The Department of Taxation administers the school district income tax, including collections through employer withholding, individual quarterly estimated payments, and annual returns. Employers remit withholding either monthly or quarterly in accordance with ORC 5747.07.

Figures reported are rounded to the nearest dollar.