Representatives Daniel Troy and David Thomas Testify on Bill to End Sale of Delinquent Property Tax Certificates

COLUMBUS – State Representatives Daniel P. Troy (D-Willowick) and David Thomas (R-Jefferson) Wednesday provided sponsor testimony to the House Local Government Committee on bipartisan legislation House Bill (HB) 493 to ban the sale of delinquent property tax certificates beginning in January 2027.

Under current Ohio law, when a homeowner fails to pay their property taxes on time, the county treasurer is permitted to sell the delinquent property tax certificate to a private third party. While this practice allows counties to recover partial revenue from unpaid taxes, it often imposes severe financial hardship on homeowners who are already having a difficult time paying for their essential needs.

“Too many Ohioans are currently struggling to meet their property tax obligations, and recent increases in property valuations have only made it more difficult for many of our citizens to pay their property taxes in a timely manner,” said Rep. Troy. “Allowing these delinquent tax certificates to be sold to third-party collection agencies only increases the pain felt by our homeowners, leaving them with mounting debt and the threat of foreclosure hanging over their heads. We need our local officials to work with them to mediate and resolve their delinquency, not hire predatory third parties to harass them.”

These private third parties often charge homeowner high interest rates and additional fees, which can quickly grow far beyond the original tax bill that the homeowner was already unable to pay to the county. They are even permitted to foreclose on the property for missed payments, allowing them even greater profit at the homeowner’s expense.

“No one should profit off the foreclosure of a home. No one,” said Rep. Thomas in his testimony. 

Rep. Thomas also shared that he was told this was something that needed to be worked on when he was a part of the Payday Loan Reform Coalition in 2017. 

“Fast forward eight years, and our property tax system is in crisis, tax delinquencies are through the roof, and those falling victim to these profit schemes are growing.”

Ending the sale of delinquent property tax certificates has been a longtime policy interest of Rep. Troy. During his tenure as a Lake County Commissioner, Rep. Troy and many of his fellow county officials opposed the county treasurer’s decision to enter into such contracts, advocating instead to pursue alternate routes in the law to mediate delinquencies and assist property owners with payment plans.

“The former treasurer indicated the desire to fulfill on a promise to voters to ‘aggressively pursue delinquent taxes.’ We all agreed that should be the goal, but certainly not by contracting with collection agencies that prioritize maximizing their profits at the expense of fiscally strained homeowners,” explained Rep. Troy. “I am glad to join my colleague, Rep. Thomas, in this effort to finally end this harmful and unacceptable practice.”

HB 493 now awaits a second hearing in the House Local Government Committee.

EDITOR’S NOTE: Attached is a photo of Reps. Troy and Thomas introducing House Bill 493.