FULL TEXT 
 
 OF THE 
 
 TAX LIMIT LAW 
 
 As passed by the House and Senate, and as it will be engrossed for the signatures 
 of the Speaker of the House and the President of the Senate to be signed by them 
 
 in the presence of their respective bodies when in session on May 10, 1910, and 
 then submitted to the Governor for his approval. 
 
 Published by the 
 
 Ohio State Board of Commerce. 
 
 78th General Assembly, 
 Regular Session, 1910. 
 
 Senate Bill No/4 
 
 MR. ALSDORF. 
 
 A BILL 
 
 To secure an equitable valuation of property for taxation by limiting the tax 
 rate, limiting the power to issue bonds, removing certain penalties for improper 
 valuation and amending certain sections of the General Code. 
 
 Be it enacted by the General Assembly of the State of Ohio: 
 
 Section 1. In any taxing district, the taxing authority shall levy a tax 
 sufficient to provide for sinking fund and interest purposes. 
 
 Section 2. The maximum rate of taxes that may be levied for all purposes, 
 by the taxing authorities of any taxing district, upon the taxable property therein, 
 shall not in any one year exceed ten mills on each dollar of the tax valuation 
 of the taxable property of such district, for that year, including the taxes levied 
 under authority of Section one of this act. 
 
 If, in any year, such rate of ten mills will not produce an amount equal to 
 the aggregate amount of taxes levied in such district in the year 1909 plus six 
 per cent, thereof for the year 1911, nine per cent, for the year 1912, and twelve 
 per cent, thereof for any year thereafter, but exclusive of any additional amount 
 authorized for sinking fund purposes, or under the provisions of section five of this 
 act, or emergencies as provided for in sections forty four hundred and fifty, forty 
 four hundred and fifty one, fifty six hundred and twenty nine and seventy four 
 hundred and nineteen of the General Code, such rate may be increased to the 
 extent necessary to produce such aggregate amount, but in no case to exceed 
 fifteen mills exclusive of levies for sinking fund and interest purposes. 
 
 Section 3. The maximum rate of taxation in any taxing district for any 
 purpose, as now fixed, shall be and is hereby changed so that such maximum 
 rate, as levied on the total valuation of all taxable property in the taxing district 
 
in each of the years 1911 and 1912 and any year thereafter would produce no 
 greater amount of taxes, than the present maximum rate for such purpose, if 
 levied on the total valuation of all the taxable property therein for the year 1910, 
 would produce, plus the additions herein provided for. Any minimum rate 
 required by law to be levied for any purpose, is hereby reduced in like proportion 
 that the maximum rate is herein reduced. The intent and purpose of this act is to 
 provide that an increase in the total valuation of all taxable property in the 
 several taxing districts, shall not increase the total amount of taxes now levied 
 therein, except to the amount of the additions herein provided for, but nothing 
 herein shall prevent the levying of an aggregate tax of ten mills in any district. 
 
 Sec. -4. For the emergencies mentioned in sections forty four hundred and 
 fifty, forty four hundred and fifty one, fifty six hundred and twenty nine and 
 seventy four hundred and nineteen of the General Code, the taxing authorities 
 of any district may levy a tax sufficient to provide therefor, irrespective of any 
 of the limitations of this act. 
 
 Sec. 5 . If in any one year, in any taxing district, the aggregate amount of 
 taxes authorized by Section two of this act is insufficient, a greater tax may 
 be levied in such taxing district for any purpose for which such taxing district 
 is authorized to levy taxes, if the proposition to make such additional levy shall 
 first be submitted to the electors of such taxing district. The submission of 
 such question to the electors shall be at the next general election after an ordi¬ 
 nance or order for such purpose takes effect, if there be such an election within 
 ninety days thereafter. In case no general election takes place within such 
 period, such question may be submitted at a special election in the manner pro¬ 
 vided by Sections thirty-nine hundred and forty-nine to thirty-nine hundred and 
 fifty-two of the General Code, inclusive, so far as they may be applicable. Such 
 increased levy may be made if a majority of the votes cast on the question at such 
 election are in favor thereof. The form of the ballot cast at such election shall be: 
 
 For an additional tax of.dollars for the purpose of 
 
 . yes. 
 
 For an additional tax of . dollars for the purpose of 
 
 . no. 
 
 Sec. 6. Whenever two or more taxing district are consolidated by annexa¬ 
 tion or otherwise, the aggregate amount of taxes authorized under Section two 
 of this act, for such consolidated district shall not exceed the sum of the aggregate 
 amounts which would have been authorized for all of said taxing districts separately. 
 
 Sec. 7. That sections thirty-nine hundred and forty-two, thirty-nine hundred 
 and forty-five, thirty-nine hundred and forty-eight and thirty-nine hundred and 
 fifty-four of the General Code be amended to read as follows: 
 
 Sec. 3942. The net indebtedness incurred by any township or municipal 
 corporation for the purposes mentioned in Sections thirty-two hundred and ninety- 
 five and thirty-nine hundred and thirty-nine of the General Code, shall never exceed 
 two and one-half per cent, of the total value of all the property in such corporation 
 or township, as listed and assessed for taxation unless the excess of such amount 
 is authorized by vote of the qualified electors of the township or corporation in the 
 manner hereinafter provided. 
 
 Sec. 3945. Such limitation of one per cent, and two and one-half per cent, 
 hereinbefore prescribed shall not affect bonds lawfully issued for such purposes 
 upon the approval of the electors of the township or corporation. 
 
 2 
 
Sec. 3948. Before any bonds in excess of such limitations of one per cent, 
 and two and one-half per cent, are issued and tax levied, the question of issuing 
 them shall be submitted to the voters of the township or corporation at a general 
 or special election. 
 
 Sec. 3954. No municipal corporation or township shall create or incur a 
 net indebtedness under the authority of this chapter in excess of five per cent, 
 of the total value of all the property in such township or corporation as listed 
 and assessed for taxation. Bonds issued in good faith for such purposes, which 
 at the time of issue were within the limitations existing at the time of such issue, 
 shall be valid obligations of the township or municipal corporation which issued 
 them. In ascertaining the limitations of such five per cent, and of such two and 
 one-half per cent., all such bonds shall be considered, except those specifically 
 excluded by section thirty-nine hundred and forty-six of the General Code. 
 
 Section 8. That sections 5398, 5399, 5400, 5401, and 5402 of the General 
 Code, be amended so as to read as follows: 
 
 (T> 
 
 Sec. 5398. If a person required to list property or make a return thereof for 
 taxation, either to the assessor or the county auditor, in the year 1911 or in any 
 year thereafter makes a false return or statement, or evades making a return or 
 statement, the county auditor for each year shall ascertain as near as practicable, 
 the true amount of personal property, moneys, credits, and investments that such 
 person ought to have returned or listed for the year 1911 or for any year thereafter 
 for which the inquiries and corrections provided for in this chapter are made. To 
 the amount so ascertained as omitted for each year he shall add fifty ber cent., 
 multiply the omitted sum or sums, as increased by said penalty by the rate of 
 taxation belonging to said year or years, and accordingly enter the amount on the 
 tax lists in his office, giving a certificate therefor to the county treasurer who shall 
 0} collect it as other taxes. 
 
 Sec. 5399. If any person required to list property, or make a return thereof 
 for taxation to the assessor or county auditor, or to a board, officer, or person, 
 other than a board composed of officers of more than one county, in the year 
 nineteen hundred and eleven , or in any year or years thereafter fails to make a return 
 or statement, or if such person makes a return or statement of only a portion of 
 his taxable property, and fails to make a return as to the remainder thereof, or if 
 he fails to return his taxable property or part thereof, according to the true value 
 thereof in money, as provided by law, the county auditor for each year as to 
 *3uch property omitted and as to property not returned or taxed according to its 
 true value in money, shall ascertain as near as practicable the true amount of per¬ 
 sonal property, moneys, credits, and investments that such person ought to have 
 - returned or listed, and the true value at which it should have been taxed in his 
 county for not exceeding the five years next preceding the year in which the 
 inquiries and corrections provided for in this section and in the next preceding and 
 the next two succeeding sections are made and not in any event prior to the year 
 nineteen hundred and eleven, and multiply the omitted sum or sums by the rate 
 of taxation belonging to said year or years, and accordingly enter the amount on 
 the tax lists in his office, giving a certificate therefor to the county treasurer, who 
 shall collect it as other taxes. The term “personal property” as used in this 
 section shall apply to all kinds of omitted property for the taxation.of which, 
 for any of the years in which it was omitted, provision has not been made by law. 
 
 Sec. 5400. The power and duty of the county auditor under the provisions 
 of the next preceding section, shall extend to all cases where property, taxable 
 
 3 
 
 £ 
 
 36608 
 
 
within his county, has for any reasons not been assessed and taxed according! 
 to its true value in money, as provided by law, except that where provision is) 
 made by law for the appraisement and assessment of property by a board com-! 
 posed of officers of more than one county, and such property or part thereof has! 
 escaped taxation, the duties provided in such section shall be performed by such! 
 board. The board, at any subsequent meeting, may appraise and assess suchj 
 omitted proberty for the year or years so omitted, and certifiy its assessment to) 
 the proper officer or officers to be placed upon the tax lists of the proper county 
 or counties for the collection of omitted taxes thereon in a like manner as cur-j 
 rent assessments are certified by said board, and such officer or officers shall give] 
 a certificate therefor to the county treasurer, as in other cases. 
 
 Sec. 5401 . The county auditor, if he shall have reason to believe, or is informed] 
 that a person has in the year nineteen hundred and eleven or in any year thereafter , 
 given to the assessor a false statement of the personal property, moneys, or credits,) 
 investments in bonds, stocks, joint stock companies, or otherwise, that the assessor 
 has not returned the full amount required to be listed in his ward or township, or 
 has omitted or made an erroneous return of property, moneys, or' credits, invest- j 
 ments in bonds, stocks, joint stock companies, or otherwise, which are by law) 
 subject to taxation, shall proceed, in said year nineteen hundred and eleven or in any \ 
 year thereafter at any time before the final settlement with the county treasurer to 
 correct the return of the assessor, and charge such persons on the duplicate with 
 the proper amount of taxes. To enable him so to do, he may issue compulsury 
 process, and require the attendance of any persons whom he thinks have knowledge 
 of the articles, or value of the personal property, money or credits, investment in | 
 bonds, stocks, joint stock companies, or otherwise, and examine such persons, 
 on oath, in relation to such statement or return. The auditor, in all such cases* 
 shall notify every such person, before making the entry on the tax-list and dupli¬ 
 cate, that he may have an opportunity of showing that his statement or the return 
 of the assessor was correct. The auditor, in all such cases shall file in his office a 
 statement of the facts or evidence upon which he made such correction; but, he 
 shall not reduce the amount returned by the assessor, without the written assent 
 of the auditor of state, given on a statement of facts submitted by the county 
 auditor. 
 
 Sec. 5402. If a person makes a false statement of the amount of property 
 for taxation, to wholly or partially evade the payment of taxes, he shall pay 
 all costs and expenses that may be incurred under the provisions of the next 
 preceding section, and like fees and costs shall be allowed and paid as are allowed 
 by law, for similar services, and if not paid, may be collected before any justice of 
 the peace of the proper county, by suit in the name of the county commissioners. 
 In all cases under such section, where the statement is found correct, and no 
 intention to evade the payment of taxes appears, the costs and expenses incurred 
 shall.be paid out of the county treasury of the proper county, on the order of the 
 county auditor. 
 
 Section 9. The provisions of this act shall not apply to the levy or collec¬ 
 tion of taxes for the year nineteen ten or to the assessment of personal property 
 for taxation for the year 1910. 
 
 Sec. 10. That said original Sections 3942, 3945, 3948, 3954, 5398, 5399, 
 5400, 5401, and 5402 of the General Code, and all acts or parts of acts in conflict 
 herewith be and the same are hereby repealed. 
 
 Sec. 11. This act shall take effect and be in force from and after January 
 1. 1911.