Representative David Thomas Introduces County Budget Commission Overhaul to Give Taxpayers Relief

State Representatives David Thomas (R-Jefferson) recently introduced what he is calling a large overhaul to the checks and balances for property tax rates at the local level. Thomas’ Budget Commission Overhaul Act – House Bill 309 aims to keep tax rates and revenues low by strengthening the financial oversight arm of a county’s ability to decrease tax rates and review budgets and levies. 

“The County Budget Commission should be the ultimate taxpayer protection when voters approve levies,” said Rep. Thomas. “But instead, the County Budget Commission has become a rubber stamp at a time when property tax rates are excessively high across Ohio.”

The County Budget Commission consists of the County Auditor, County Treasurer, and County Prosecutor. The Commission is tasked with annually reviewing the budgets of taxing authorities and setting tax rates based on need of revenue and voter approval. Thomas believes black and white direction for reducing tax rates, limiting carryovers, and giving full authority to local checks and balances is needed as tax rates rise and carryovers grow. 

“This bill came to be from Auditors across Ohio who would like the authority to reduce tax rates but cannot,” said Rep. Thomas. “This bill allows for a full check on local taxing authorities and provides the ability to prevent spikes in unvoted increases, lower tax rates, and even curb unnecessary spending.”

Thomas’ legislation would grant explicit authority to the Budget Commission to decrease tax rates should that revenue not be needed for services, authority to suspend and not collect unvoted tax increases, decrease bond levies and emergency levies, require hearings for local entities with excessive carryovers, mandate the review of proposed county levies, and many more safeguards for taxpayers. 

The County Budget Commission is currently in existence, but it is limited in its scope and ability to reduce tax rates due to state law. Thomas points to this legislation as reform to the property tax system. 

“I made this bill bold and gave strong authority to the financial leadership of each county to keep this problem of unvoted spikes and rising taxes in check at the local level,” said Rep. Thomas. “I continue to urge local governments to use other revenue sources and shift the burden off property owners.”

The Budget Commission Overhaul Act makes the following updates: 

• Includes explicit language that the Budget Commission’s responsibility is to review yearly all property tax levying political subdivisions for need of the property tax revenue in the following year and grant full authority to suspend, reduce, and question need for all property tax revenue including inside millage, outside voted levies, emergency levies, bond levies, etc.
• Requires a public hearing of the Budget Commission and local subdivision entity should carryover of property tax levied dollars increase beyond 30% of the prior year’s expenses for that fund. The hearing would be to determine need of property tax revenue in the following year for that fund’s purpose.
• Grants explicit ability for the budget commission to review all forms of health departments and county metropark budgets for need of revenue received by the health departments from local entities or property taxpayers. The Budget Commission may decrease revenue to these entities in a manner similar to property tax levy rates.
• Requires local entities to formally accept unvoted property tax increase revenue, to display to the public the amount of unvoted increase and the opportunity to not accept the tax dollars.
• Removes the veto ability for the largest city to prevent approval of the local government fund allocation. 
  County district library levies shall be determined by the County Commissioners in a manner similar to Children Service, Mental Health, and Developmental Disabilities levies.
• The Budget Commission shall provide a recommendation of action to the County Commissioners prior to county levying agencies receiving a vote on new or existing levy action by the County Commissioners.
• And much more. 

HB 309 will receive Sponsor Testimony today in the House Ways and Means Committee.