Board Approves Move to Try to Recoup $11 million TPP Loss

The Mason City Schools Board of Education voted to join the Coalition for Fiscal Fairness in Ohio (CFFO) during its February 24 meeting. The District hopes to have a better shot at recouping $11 million in lost state revenue by partnering with other Ohio school systems who are losing a large portion of the state’s hold harmless Tangible Personal Property tax monies.

"The loss of $11 million in tangible personal property phase-out revenues forces our school district into an unacceptable financial position," explained Dr. Kevin Bright, Mason City Schools’ Superintendent. "We think it is important to do everything we can to proactively advocate for a permanent provision that provides relief for districts like Mason who are significantly impacted by the TPP elimination."

The six school districts that initially formed the coalition last year include Benjamin Logan, Princeton, Madison Local, Marysville, Ontario and Solon.

Tangible Personal Property Tax Background
In 2005, House Bill 66 phased out the tax on the tangible personal property (machinery, equipment and inventory) of general businesses, telephone and telecommunications companies, and railroads. This tax was completely phased out in 2009, and school districts are currently receiving hold-harmless revenue which will be phased out in 2013.