One measure of property tax relief works its way through Ohio Statehouse
COLUMBUS, Ohio (WCMH) -- Property tax reform and relief is something Ohio lawmakers say they want to get done and now, after years of inaction, one measure has taken a step forward.
House Bill 28 is a reintroduction of a bill from the last general assembly that never saw a floor vote, but this general assembly, three months in, and it is on its way to the Ohio Senate.
The legislation would eliminate replacement levies.
“We have a lot more work to do in this body,” Ohio House Assistant Minority Leader Dontavius Jarrells (D-Columbus) said. “And that bill takes us in the wrong direction.”
“If we want to enact real property tax reform, we need to fix the system that got us into the point that we're in today,” Rep. Thomas Hall (R-Madison Township), one of HB 28’s sponsors, said.
Here’s what to know about levies: there are three different types you might see when you go to the polls. One always results in an increase, one never does, and one is variable.
- A “renewal levy” reinstates an already existing levy.
- A “renewal with an increase,” reinstates an already existing one with an increase.
- A “replacement” recalculates property taxes owed based on the latest valuation of one’s home, oftentimes resulting in an increase.
“I think [House Bill 28] brings transparency for the voters when they go to the ballot box to make informed decisions,” Hall said. “Replacement levies are very confusing. This doesn't take away the ability for renewal. This doesn't take away the ability for people to have a renewal with an increase. It just takes away one of their tools that we feel like is very misleading when presenting to voters.”
Hall said voters often don’t know that type of levy will cause an increase and said that overall, this will simply empower voters with more information with two clear levies.
In the state’s November 2023 election, replacement levies passed at an 89% rate across the state, and renewal with increase levies passed at an 86% rate.
Democratic leaders said eliminating replacement levies does not help bring Ohioans direct relief, and it stands to hurt local governments.
“It would take away opportunities for our local governments to be able to have options when they're putting levies on the ballot,” Rep. Beryl Brown Piccolantonio (D-Gahanna) said. “It is maybe a tiny little piece of what we've been talking about with property tax relief, but it does it at the expense of flexibility for our local governments who are already struggling.”
What services might be at risk? Jarrells said he worries that fire and police departments, mental health services and other locally funded services might feel the brunt of a removal of replacement levies if the bill goes all the way through.
“We should be really having honest conversation around property taxes,” Jerrells said. “How do we actually support our cities without necessarily taking tools away?”
While this bill has gotten through the Ohio House, there are at least 15 others aiming to bring Ohioans property tax relief that are being worked on in committee. But how is it going to get done?
“When you're trying to solve a big problem with lots of parts to it, I think it's best to pass the things that are easiest first and that are clearest,” Ohio House Speaker Matt Huffman (R-Lima) said. “I think it's a good start, but there is much more to do.”
“We need comprehensive property tax reform instead of just taking a buzzsaw to every little thing,” Rep. Dan Troy (D-Willowick) said. “We can do better.”
Right now, several of the bills focus on relief for elderly Ohioans, but lawmakers said that is not where they want to stop, just where they want to start.
“I do think that property tax reform is needed for all levels of age, but I do have a soft heart and focusing primarily on our people, on a fixed income,” Hall said. “Our system right now is taxing some of these people out of their own homes.”
House Bill 28 must now be considered by the Ohio Senate before a vote to pass sends it to the governor’s desk.