Ohio's property tax crisis: Lawmakers propose bills to provide relief

COLUMBUS, Ohio — There’s a growing consensus among Ohio lawmakers: something needs to be done about rising property taxes. But what exactly?

Multiple bills have been introduced in the Ohio legislature.

The GOP House budget also included a provision on the issue this week. But, so far, any potential solutions remain merely as ideas being discussed.
 
“Folks are hurting out there,” said State Representative Sean Patrick Brennan (D – Parma). “It’s senior citizens. It’s families. It’s young people wanting to buy their first home. It’s renters!”

Most of the bills being introduced focus on exemptions for vulnerable populations.

“So many people in my district are on fixed incomes,” said State Representative Brian Lorenz (R-Powell). “They’re retired. They’re planning on X amount for their tax bill and then when it’s 3-fold, you know I’m getting calls. We need to react and make sure that people have some certainty in going forward that are on budgets.”

Representative Brennan is hearing similar concerns from his constituents. That’s why he introduced HB 143, which would double the homestead exemption for seniors and permanently disabled Ohioans. The bill has already received bipartisan support.
He also recognizes this issue has a wider impact.

“We’ve got to do something to provide relief for everybody,” said Rep. Brennan.
On Tuesday, House GOP leaders introduced a plan as part of their budget proposal. It’s tied directly to school reserves. Read more about the proposal here.

“Every school district would be able to carry over 25% of its prior year operating expenses as a reserve fund,” said State Representative Brian Stewart (R-Ashville), in a Statehouse news conference. “But if the school is carrying more than 25%, we’re going to require that the county budget commission shall withhold property tax monies that otherwise would have gone to the school and those would essentially be refunded to the property taxpayers as immediate property tax relief.”

House Democrats were quick to oppose the idea.

“What the budget produced was nothing that actually helps people make sure that they're not being taxed out of their homes,” said State Representative Bride Rose Sweeney (D-Westlake).
 
She points to homestead exemptions and circuit breaker bills that have wide bipartisan support, with success seen in both red and blue states where similar legislation has been enacted.

“Almost everyone supports the ideas of both of these measures,” said Rep. Sweeney. “The big fight is who should pay for them.”
She sees only one direct solution.

“The only way to get real relief is if the state of Ohio actually chips in,” said Rep. Sweeney.

Other legislation being discussed includes House Bill 28, approved by the Ohio House of Representatives, which would eliminate replacement property tax levies, avoiding “unintended property tax increases.” The bill is now in consideration in the Ohio Senate.

Representative Brennan is concerned that, if legislation is not ultimately approved and signed by the Governor, the issue will unfairly fall on school districts, which raise money for funding through property tax levies, making them “the bad guy.”

“The way we fund schools in Ohio has unfairly pitted our property owners against our children, and that’s just wrong,” said Representative Brennan. “It’s heartbreaking and I don’t think a lot of people understand that.”

So, the push for reform and relief continues on multiple fronts.

“We’ve got to do something,” said Rep. Brennan.

The House GOP budget proposal, which addresses property taxes related to school reserves, must be voted on in the full Ohio House of Representatives. That vote is expected on April 9. Then, Ohio Senate budget hearings will begin. Other bills related to property tax relief remain in various stages of committee hearings.

“The major thing is working together,” said Rep. Lorenz. “Putting together a solid plan that’s going to be ironclad that‘ll pass both chambers, go to the Governor and have him sign that. That really alleviates the concerns and the unknown.”