income tax ballot issue - Frequently Asked Questions

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The Fairfield City School District Board of Education has approved placing a 1.25% school district earned income tax on the May 5, 2026 ballot. If approved by voters, the tax would apply to earned income and would be used to support the district’s general operating expenses. 

The district is facing long-term financial challenges due to reduced state funding and rising operating costs. An earned income tax provides an additional revenue source to address the existing budget gap.

In Ohio, earned income is received from working, such as wages, salaries, overtime, bonuses, commissions, tips, and net income from self-employment or contract work. Income not earned through work, such as Social Security, most pensions, disability or unemployment benefits, interest, dividends, capital gains, and other investment or retirement income, is not considered earned income. Only individuals with wages or self-employment income would pay an earned income tax. 

Yes. The Fairfield City School District includes residents who live in both the City of Fairfield and Fairfield Township. All residents who live within district boundaries and earned income would be subject to the tax, regardless of municipality. 

FCSD last passed an operating levy in November of 2011.  This operating levy was projected to sustain the district for 5 years.

A property tax is based on the value of a home or business property and is owed regardless of a person’s income. An earned income tax is based only on wages and other earned income from working, such as salaries and hourly pay. Individuals who do not earn income from work, such as retirees without wages, do not pay the earned income tax. 

The last operating levy was a 6.5-mill continuing operating levy passed by voters in November 2011. It was projected to last 2-3 years and has lasted 12+ years. 

The tax would apply to individuals who earn wages or other earned income and live in the Fairfield City School District. 

Individuals whose income consists solely of non-earned income, such as Social Security benefits, most pensions, disability benefits, interest, dividends, other investment income, or retirement benefits would not pay the earned income tax. Only income earned from working, such as wages and salaries, is subject to the tax. 

Most retirees would not pay the tax if their income is from Social Security, pensions, disability benefits, interest, dividends, other investment income, or retirement benefits that are not considered earned income.

Yes. This proposal does not reduce or eliminate existing property taxes. It is intended to diversify the district’s revenue sources and reduce reliance on future property tax increases. 

For every $10,000 in earned income, a taxpayer would pay $125 annually. For example, someone earning $50,000 would pay approximately $625 per year. Someone earning $75,000 would pay $937.50 per year.  Someone earning $100,000 would pay $1,250 per year.  To find out how this will impact you, multiply your gross salary by 0.0125. 

Revenue generated from the earned income tax would be used to maintain current student programming and academic services.  It will also support daily operating costs such as maintaining current staffing, student services, transportation, and utilities. 

No. Earned income tax revenue can only be used for general operating expenses, not for permanent improvements or new construction.

The Board selected a 1.25% rate to provide long-term financial stability and avoid returning to voters again in just a few years due to insufficient funding. 

If the school district earned income tax does not pass, the district will be required to make significant reductions that would impact staffing, academic programs, and extracurricular opportunities, as well as limit services provided to students. 

If approved by voters, the earned income tax would begin in January 2027, with collections starting shortly thereafter. 

The proposed earned income tax would be a continuous tax, meaning it would not have an expiration date.

The tax would be administered and collected by the appropriate local or regional tax authority, similar to other school district income taxes in Ohio. 

Additional information will be shared through the district website, income tax ballot issue website yesforfairfield.org, community meetings, and official communications. Residents are encouraged to attend public forums and review official ballot language.