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School Finance Terms Glossary

School Finance & Basic Terminology

What Is a Mill?

As voters, we hear the term "mill" frequently. But what exactly is a mill?

In short, a mill is one-tenth of a penny. One mill produces $1 in tax income for every $1,000 of assessed property value it is applied against. “Millage” is the unit of value for expressing the rate of property taxes in Ohio.

The longer explanation begins with the distinction between appraised value and assessed value of your property. The appraised value is the "real value" of your property; or what the property would sell for in the open market. The county auditor has the task of appraising all taxable property in the county.

Assessed value is the value of the property that millage rates are applied to. In Ohio, the assessed value of property is set at 35% of appraised value.

For example, if a home is appraised at $100,000 it is taxed at the assessed value of $35,000 ($100,000 x .35).
To carry this example further, one mill would produce $35 of tax income ($35,000 x .001) from your $100,000 home.

Through the years, the state of Ohio has enacted various credits that reduce the amount property owners pay for real estate taxes.

A 10% rollback directly reduces a homeowner’s tax bill by 10%.
The Homestead Exemption enacted in 1979 increases the rollback by an additional 2.5% if the owner lives in the taxable property. For our example, these credits would reduce the tax bill by $4.38 to $30.62.

These credits do not represent lost revenues for Anthony Wayne Schools as the state picks up your savings and reimburses the school for them.

Questions concerning millage, appraised value, assessed value or how individual property taxes are calculated can be directed to the Lucas County Auditor and Lucas County Treasurer.

More School Finance Terms

Assessed Value

The assessed value of a property is 35% of its market value, and is the amount that is used to determine tax amount.

Bond Issue or Bond Levy
Property tax levies used exclusively to generate revenue for construction/renovation.

Effective Millage

Actual mills being collected as tax revenue

Emergency Levy

This is a property tax that serves as a limited operating levy (maximum of ten years) proposed for a specific dollar amount. Because the dollar amount of taxes charged by the levy must stay constant, the millage rate increases or decreases as property values change. Emergency levies may be renewed for the dollar amount originally requested.

Expiration of Limited Levy

When a limited or emergency levy expires, the Board of Education can choose to renew the levy or replace the levy.

Market Value

The list price, or amount that a property could potentially sell for.

Mill

Property tax is measured in mills. A mill means 1/1,000. Therefore, each mill generates $1 in taxes for ever $1,000 of a property's assessed value.

Operating Levy

Property tax revenue used by a school district for funding operations. A continuing levy imposes a tax that a school district will collect until it is revoked by voters. A limited or emergency levy imposes a tax that a school district collects for a specified term - usually one to five years.

Permanent Improvement Levy

Property tax revenue used by a school district to fund projects and purchase with an expected useful life of at least five years.

Renewal Levy

Renewal levies must be for the same purpose and must be renewed at the effective millage rate. For example, a five-mill, five-year levy that has been reduced to 3.8 mills due to increase school district valuation would be renewed at the 3.8-mill rate. A renewal levy may be combined with additional millage.Property tax revenue used by a school district to fund projects and purchase with an expected useful life of at least five years.

Replacement Levy

This type of levy has the same purpose as a renewal, but replaces the previous levy and is imposed at the original millage of the levy it replaces. This allows a school district to benefit from any growth in local value that has occurred over the life of the original levy. For example, a five-mill, five-year levy would be renewed for five mills. This type of levy cannot be used for an emergency levy and cannot be combined with other changes in millage.

School District Income Tax

A percentage rate tax on residents' incomes as reported for state income tax purposes. Income tax can be used to fund either operating expenses or permanent improvements.

Unvoted (Inside) Millage

The Ohio Constitution guarantees 10 mills of unvoted taxes, also called inside millage, for each taxing district in Ohio. AWLS receive inside millage for the General Fund and Permanent Improvement Fund.

Voted (Outside) Millage

Any millage that is not allocated by the state is considered outside millage. All outside millage is voted by residents of the District.