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April 1, 2015Representative _____________________________c/o Ohio House of Representatives77 South High Street, ______FloorColumbus, OH 43215Dear Representative ____________________:I am writing to make you aware of a very concerning provision contained in the state’s biennium budget proposal (House Bill 64), as it relates to the Tangible Personal Property (TPP) tax reimbursements to Ohio’s school districts. I urge you to reject this provision and retain current law that keeps TPP reimbursement permanent.As you are aware, HB 64 contains funding formula changes for Ohio school districts, but it also contains a concerning provision that would eliminate the TPP reimbursements to our district, regardless of any funding formula changes. I ask that you do everything you can to make certain the TPP reimbursements remain fully intact.In 2005, the General Assembly passed a tax reform measure that eliminated many business taxes in Ohio in favor of the broader-based Commercial Activity Tax (CAT). At that time, schools and businesses were promised that local TPP revenues lost through the tax reform effort would be replaced. Over the past decade and four separate funding formula models, TPP reimbursement revenues were first frozen at 2005 values and then subsequently reduced by 4% of a district’s operating revenues, leaving only the most reliant districts receiving reimbursements. Our district agreed to those reductions – equaling 20% of our TPP reimbursement – in a shared effort to help plug the state’s budget shortfalls during the recession. After that reduction, the General Assembly passed legislation creating the needed fix to make reimbursement permanent for highly reliant districts.We initially supported eliminating the TPP tax because it created a competitive disadvantage for businesses but ONLY with the understanding that school districts, residents and businesses would not shoulder the responsibility for recouping the local revenues stripped in the wake of the 2005 tax policy change. In FY14, our schools receive nearly $3.6 million less a year due to TPP funding cuts. This is a loss of approximately $845 per student annually. The tax obligation in our district has shifted and increased the property tax burden to our residents and businesses. The remaining TPP reimbursement to our district represents about 14.7% of the operating budget, or $1,476 per student. A loss of that magnitude would create a gaping hole in our bottom line and would be devastating to our community.Our schools have reduced costs and still deliver outstanding educational results. Our community has done its part to support the schools financially by passing school levies as needed. Ending TPP tax reimbursement would erode community confidence that locally raised revenues would remain local and could irreparably harm future levy efforts. Since the initial reform effort in 2005, the General Assembly has been clear that a permanent fix was necessary for highly reliant districts like ours. I urge you to keep current tax law regarding TPP funding. I understand you have a difficult task ahead in deliberating the biennium budget, but I feel compelled to help you understand the far-reaching impact of any additional TPP funding loss to not only our school district, but to the residents and businesses in your Ohio House district. Thank you for your consideration of this critical issue. Sincerely,NameTitleContact infocc: Speaker Cliff Rosenberger, Ohio House of Representatives, 77 South High Street, 14th Floor, Columbus, Ohio 43215Chairman Ryan Smith, Ohio House of Representatives, House Finance Committee, 77 South High Street, 13th Floor, Columbus, Ohio 43215 Chairman Robert Cupp, Ohio House of Representatives, Subcommittee of Finance - Primary & Secondary Education, 77 South High Street, 13th Floor, Columbus, Ohio 43215Chairman Jeff McClain, Ohio House of Representatives, House Ways and Means Committee, 77 South High Street, 12th Floor, Columbus, Ohio 43215Senator Frank LaRose, Ohio Senate, Ohio Statehouse, Columbus, Ohio 43215Legislators’ Contact InformationSpeaker Cliff Rosenberger Ohio House of Representatives 77 South High Street 14th Floor Columbus, Ohio 43215 614.466.3506Chairman Ryan Smith Ohio House of Representatives House Finance Committee 77 South High Street 13th Floor Columbus, Ohio 43215 614.466.1366 Chairman Robert Cupp Ohio House of Representatives Subcommittee of Finance - Primary & Secondary Education 77 South High Street 13th Floor Columbus, Ohio 43215 614.466.9624 Chairman Jeff McClain Ohio House of Representatives House Ways and Means Committee 77 South High Street 12th Floor Columbus, Ohio 43215 614.644.6265Representative Kristina RoegnerOhio House of Representatives77 South High Street11th FloorColumbus, OH 43215 614.466.1177Senator Frank LaRoseOhio Senate Building1 Capitol SquareGround FloorColumbus, OH 43215 614.466.4823 ................
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