District Net Indebtedness Limitations

This page provides information, guidance and the forms necessary for school districts to comply with the statutory requirements regarding the net indebtedness of a school district.

The tax commissioner and director of education and workforce must consent to placing a school district bond issue on an election ballot when the district's net indebtedness, including the proposed bond issue, would be greater than 4% of the district's tax valuation. If the net indebtedness exceeds 9%, a special needs designation is also required.

Ohio law specifies when a district may exceed these net indebtedness limitations to raise funds necessary to participate in a project under Chapter 3318 of the Revised Code and districts are required to notify the director of education and workforce when this will occur.

For questions regarding any of the information provided here, please email bond.finance@education.Ohio.gov.

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Election Dates and Ballot Consent Deadlines

• 2024 Election Dates and Ballot Consent Deadlines

Governing Authority and Policies

• Ohio Revised Code Section 133.06 - Net Indebtedness of School District
• Ohio Department of Education & Workforce Policies  (NEW NOV. 2023)
• Ohio Department of Taxation DTE Bulletin 8: Memorandum Regarding Requirements for State Consents to Board of Education Bond Issue Elections  (NEW 5/31/2023)​

Required Documents for Ballot Consent and Special Needs Determination

• Request for Consent and Special Needs Determination Application Part I and Part II  (NEW 10/31/2023) 
• DTE Form 131 (Net Indebtedness Calculation)  (NEW 5/31/2023)
• DTE Form 130 (County Auditor Mileage Certificate)
• Current Certified DTE Form 13 Tax Valuations needed to complete the DTE Form 131 (above). Provided within report “SD1” under the section titled “Property Tax.”
• TY2022 Historical Growth and 10-Year Projection Worksheets  (NEW 10/31/2023)
• Historical Certified DTE Form 13 Tax Valuation Data Required for Historical Analysis: See report “SD1” under the section titled “Property Tax.”
• 2005-2010 Reductions to Complete Special Needs Historical Analysis: See Bulletin 8 (above) for more information regarding “School District Taxable Property Values to Assist in Calculation of Net Indebtedness under Section 133.06 of the Revised Code.” 

Required Notification

• Notification: District to Exceed Net Indebtedness Limitations: (NEW 10/31/2023)                A district is required to notify the director of education and workforce whenever it intends to exceed net indebtedness limits to raise funds necessary to participate in a project under Chapter 3318 of the Revised Code, as permitted by ORC 133.06(I).
• Required notifications should be emailed to bond.finance@education.Ohio.gov.

The Department recommends emailing the Department of Taxation at DTE@tax.state.oh.us to verify the accuracy of all calculations of Net Indebtedness and historical Tax Valuations prior to submission deadlines.

Last Modified: 11/8/2023 11:25:10 AM

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