228 N.E.2d 874 | Ohio Ct. App. | 1967
Lead Opinion
The Cambridge City School District was dissatisfied with the action of the Guernsey County Budget Commission when it approved its tax levy under the ten-mill limitation (Ohio Constitution Section 2, Article XII) under Section
Section
"The commission shall ascertain that the following levies areproperly authorized and if so authorized, shall approve thefollowing levies without modification:
"(A) * * *
"(B) * * *
"(C) * * *
"(D) A minimum levy within the ten-mill limitation for thecurrent expense and debt service of each subdivision or taxingunit, which shall equal two thirds of the average levy forcurrent expenses and debt service allotted within thefifteen-mill limitation to such subdivision or taxing unitduring the last five years said fifteen-mill limitation was ineffect, * * *
"(E) * * *
"(F) Divisions (A), (B), (C), (D), and (E) are mandatory andcommissions shall be without discretion to reduce such minimumlevies except as provided in such divisions." (Emphasis added.)
Section
"This section does not give the Board of Tax Appeals any authority to place any tax levy authorized by law within the ten-mill limitation outside of such limitation, nor to reduce anylevy below any minimum fixed by law." (Emphasis added.)
It is stipulated that the minimum levies under the formula of Section
Subdivision Mills County of Guernsey 2.50 City of Cambridge 2.80 Cambridge Township .10 Cambridge City School District 4.40 Total
9.80
This leaves two-tenths of a mill as free millage for distribution at the discretion of the budget commission.
However, the budget commission in its certification to the Cambridge City School District under Section
Subdivision Mills County of Guernsey 3.00 Cambridge City School District 4.00 City of Cambridge 2.90 Cambridge Township .10 Total 10.00
This certification reduced the levies of Cambridge City School District by .40 of a mill. In our opinion this reduction is contrary to law.
To put it bluntly the Cambridge City School District is to receive .4 mill under or below the minimum fixed by law.
The excuse of the budget commission and in turn of the Board of Tax Appeals is spelled out in the opinion-entry of the board.
"It is apparent that for a proper determination of the precise meaning of the provisions of Revised Code Section
The definition of "subdivision" as contained in Section
The situation giving rise to the adoption of this excuse came about when a part of the territory of the Liberty-Wheeling Local School District was duly annexed to the Cambridge City School District. At the time of that annexation, the minimum levy under the Statute, Section
The Board of Tax Appeals said further in its opinionentry: *80 "To interpret this language to mean any subdivision or taxing unit as it now exists and regardless of any annexations or detachments of territory that may have occurred since 1934 is to render the statute without meaning."
The Board of Tax Appeals then likened the Cambridge City School District to an "entirely new created district" since 1934, and said: "In such cases there would be no minimum levies for the five-year period set out in Revised Code Section
The legislative intent placed upon Section
Assuming, but not approving the reasoning of the Board of Tax Appeals for the annexation here did not create an entirely new subdivision or taxing unit, we point out that even if the lowest of the "inside millage" of the previously existing subdivision, in this case Liberty-Wheeling Local School District, at 4.00 mills, it would still be possible by applying the other minimal tax levies within the ten-mill limitation to ascertain that the budget request of Cambridge City School District was within the ten-mill limitation and was, therefore, properly authorized.
For the minimum levies under Section
Subdivision Mills County of Guernsey 2.50 City of Cambridge 2.80 Cambridge Township .10 Cambridge City School District 4.00 Total
9.40
The mandated levy of the Cambridge City School District could even then be made within the 10-mill constitutional limitation. *81
Regardless of any territorial changes that may have taken place, since 1933, the minimal levies of the "inside millage" remain the same, based upon the formula of the statute which fixes by law the minimum tax levies of such "inside millage" which the budget commission "shall approve * * * without modification."
Neither the budget commission nor the Board of Tax Appeals has any discretion to exercise in this case, since all the mandatory minimum tax levies of "inside millage" can be met without going over the ten-mill limitation. It is only when the mandatory minimum levies exceed the ten-mill limitation that the administrative agencies, the budget commission and the Board of Tax Appeals, have any discretion.
In this case the total of the mandated minimum levies of "inside millage" is 9.8 mills, supra. Since that total does not exceed the ten-mill constitutional limitation, and since the minimum levies of inside millage are fixed by law under Section
The words of Section
Any other formula however equitable, reasonable or expedient would be administrative or judicial legislation.
For the reasons given, the determination of the budget commission and the decision of the Board of Tax Appeals are reversed as being contrary to law. Judgment is entered that the budget commission and the Board of Tax Appeals comply with the provisions of Sections
Decision reversed and judgment accordingly.
VAN NOSTRAN, J., concurs.
Dissenting Opinion
Search of the Code does not reveal any express provision for the method of computing the mandatory minimum levy for the resulting district when by *82
annexation or consolidation there has been a combining of territories for which different mandatory minimum levies are provided under the provisions of Section
The "subdivision" or "taxing unit" for which a mandated minimum levy is computed, under the provisions of Section
As thus determined, territory in the Liberty-Wheeling Local School District became entitled to a mandated minimum levy of 4.0 mills and territory in the Cambridge City School District became entitled to a mandated minimum levy of 4.4 mills.
Now that territory from the Liberty-Wheeling Local School District has been transferred to the Cambridge City School District, what is the mandated minimum levy which becomes applicable under the provisions of Section
When territories having different mandated minimum levies have been combined, it is my opinion that under the provisions of Section
Such a prorated levy can easily be computed by multiplying the separate tax valuation of each territory by its separate mandated levy prior to combination and dividing the sum of the amounts raised by the total tax valuation of the combined territories.
Such prorated levy when computed will be more than 4.0 mills but less than 4.4 mills, and will be a uniform levy applicable to all the combined territory. It will give to the combined district an amount as mandated by Section
The majority opinion also contains a statement that:
"It is only when the mandatory minimum levies exceed the ten-mill limitation that the administrative agencies, the budget commission and the Board of Tax Appeals, have any discretion."
It is my opinion that it is only when the aggregate of the mandated minimum levies is less than ten mills, as in the instant case, that the budget commission and the Board of Tax Appeals have discretion as to allotment of the unmandated balance.
When the mandated minimum levies exceed the ten-mill limitation, the administrative agencies, the budget commission and the Board of Tax Appeals, would have no discretionary power; rather it would be their mandatory duty to reduce the aggregate of the levies to the ten-mill limitation of Section
"When by a combination of taxing districts the minimum levies prescribed by Section