School districts turn to income taxes, seeking to diversify as property tax threat looms
Airfind news item
By Laura Hancock
Published on March 29, 2026.
School districts across Ohio are increasingly seeking income taxes as state funding decreases and property taxes may disappear. For the first time, Parma and Independence school districts have placed earned-income tax issues on the May 5 ballot. Other school districts across the state are also seeking income tax for the first-time. Currently, 210 Ohio school districts, including New Philadelphia in Tuscarawas County, Fairfield in Butler County, and Mount Healthy and North College Hill in Hamilton County, have income taxes. Unlike traditional income taxes, school district income taxes apply only to residents, not workers, according to state law. The Department of Taxation administers the tax by withholding from people's paychecks and sending money to districts. However, the threat of property tax abolishment looms as the General Assembly may be unable to replace the $13.6 billion in property taxes used each year.
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