Ohio School Districts Face Backlash After Wrongly Collecting $28.5 Million in Property Taxes

Adeayo Oluwasewa Badewo
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Residents in Cuyahoga County, Ohio, are facing delays in recovering millions of dollars mistakenly collected through property taxes after a clerical error resulted in nine school districts receiving an estimated $28.5 million more than they were entitled to.

County officials confirmed that incorrect tax rates led to the overcollection, with affected districts now working with the county’s Fiscal Office to recover the excess funds through reduced tax collections over the next two to three years rather than issuing direct refunds.

According to the Cleveland Plain Dealer, Sean Nuccio, treasurer of Parma City Schools, was the first to identify the discrepancy and notify county officials.

Property Reappraisals Led to Incorrect Tax Calculations

An official letter sent to the affected school districts explained that the problem originated in 2024, when certain properties in Ohio underwent reappraisal.

Although the Budget Commission initially estimated the correct rates for fixed-sum levies, those figures were not updated after the final property valuations became available.

As a result, the incorrect rates were used when property tax bills were issued in 2025.

The county’s letter stated: “The Budget Commission appears to have correctly estimated tax rates for fixed-sum levies early in 2024.

But once final property values were known, those estimated rates should have been updated before taxes were billed.”

The oversight resulted in millions of dollars being collected beyond the intended amounts.

Parma Recorded the Largest Overcollection

The nine affected school districts collectively received approximately $28.5 million in excess property tax revenue.

The individual amounts included:

Parma City Schools recorded the largest discrepancy, with more than $12.7 million collected above the expected amount.

The error was not limited to Cuyahoga County, as Ashtabula, Carroll, Champaign, Fayette, Henry, Logan and Preble counties were also identified as having made similar tax-rate calculation mistakes.

County Rejects Immediate Refund Approach

County officials are pursuing a repayment arrangement that would allow affected residents to recover the money through lower tax collections over an agreed period.

Kelly Woodward, a spokesperson for Cuyahoga County, told the Cleveland Plain Dealer that the county’s independent auditor, Clark Schaefer Hackett, and the Auditor of State had determined that the additional collections were not material for the county.

Woodward confirmed that steps were being taken to recover the money for taxpayers.

“The affected school districts are voluntarily working with the Fiscal Office to reduce their fixed-sum levy rates for a two-year period to offset the overcollection to address this matter,” she said.

Under the arrangement, residents would pay less towards emergency levies over the adjustment period until the excess collections were offset.

However, Nuccio has been negotiating a different arrangement for Parma, proposing a three-year adjustment rather than the two-year period adopted by the other affected districts.

Residents Challenge the Repayment Timeline

The proposed repayment arrangement has attracted criticism from Ohio residents, particularly over the length of time it could take for taxpayers to receive the money owed to them.

Some residents have questioned why the county is not issuing direct refunds, while others have raised concerns about homeowners who have already sold their properties.

One commenter questioned how the arrangement would work for people who had sold their homes, asking whether the new owners would benefit from the eventual tax reductions instead of the original taxpayers who overpaid.

Another resident criticised the proposed two-to-three-year repayment period, arguing that refunds should be issued immediately, with additional compensation through interest and penalties.

A separate commenter also objected to the arrangement, questioning why new homeowners should benefit from reductions linked to taxes paid by previous property owners.

Parma District Says Reserved Funds Cannot Fully Resolve Problem

Nuccio told the Cleveland Plain Dealer that Parma City Schools had set aside funds that could help offset some of the expected reductions in tax collections.

However, he explained that the reserved money would not completely address the financial challenges created by the discrepancy.

“Those funds are already committed and are not available to address the district’s ongoing budget challenges,” Nuccio said.

The district’s proposed three-year adjustment plan is therefore separate from the two-year arrangement being pursued by the other affected school districts.

Special Meeting Cancelled as County Provides Contact Details

County officials had initially informed the affected school districts about a special Board of Revision meeting scheduled for August to discuss the clerical error.

The meeting was subsequently cancelled, and it remains unclear whether another session will be arranged.

Woodward has advised residents seeking clarification about the tax adjustments and repayment process to contact the Cuyahoga County Fiscal Office directly.

The office can be reached at 216-443-7010.

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