Ohio Constitution Article XII - Finance and Taxation
Ohio Constitution – Article XII: Finance and Taxation deals with the state's powers and limitations related to taxation, public revenues, and financial administration. This article outlines how taxes may be levied, what is exempt, and ensures transparency and fairness in the collection and use of public funds.
Here is a summary of key sections in Article XII:
🔹 Section 1 – Power to Tax
The state may levy taxes for public purposes only. Taxation must be uniform on the same class of subjects within each taxing district.
🔹 Section 2 – Real and Personal Property Taxation
All real and tangible personal property shall be taxed by uniform rule, except for exemptions as specified by law (e.g., public property, places of worship, institutions of public charity).
🔹 Section 3 – Exemptions from Taxation
Allows the General Assembly to exempt certain properties from taxation, including:
Public school property
Churches and charitable institutions
Cemeteries
Public property used exclusively for public purposes
🔹 Section 4 – State Debts
The state cannot incur debt except for specific reasons like:
Defending the state in war
Repelling invasion
Suppressing insurrection
Redeeming state debt
🔹 Section 5 – Tax Rates
Limits the total property tax rate for state and local purposes unless voters approve an excess levy.
🔹 Section 6 – Inheritance and Income Taxes
6(A): Income may be taxed, and the General Assembly determines the rates.
6(B): No graduated income tax (i.e., progressive tax rates) unless constitutionally authorized.
🔹 Section 7 – Lottery Proceeds
Proceeds from lotteries (legalized in Ohio) must be used solely for public education.
🔹 Section 8 – Motor Vehicle Taxes
Revenues from taxes on motor vehicles or fuel must be used only for highway construction, maintenance, and related activities.
🔹 Section 9 – Severance Taxes
Allows the state to tax natural resource extraction (like coal or oil). Revenues should support conservation and infrastructure.
This article reflects Ohio’s attempt to balance fiscal responsibility, transparency, and public benefit in tax policy.
RELATED Blog
0 comments