Republicans in the Ohio House are introducing legislation that they say would deliver $3.5 billion of property tax relief to Ohioans. The comprehensive legislation called "The Property Tax Relief Now Act" combines several existing bills into one comprehensive package.
Rep. David Thomas (R-Jefferson) said Ohio’s property taxpayers need relief now.
“They have seen outlandish spikes in their property taxes while they have not seen their incomes grow and while they have seen their expenses rise,” Thomas said.
Rep. Bill Roemer (R-Richfield), who chairs the House Ways and Means Committee, said property owners in Ohio would be helped by passage of this new legislation.
"This is bold legislation that will have a significant impact on property tax reform,” said Roemer.
What the legislation would do
The legislation would limit the growth of property taxes for public schools and joint vocational school districts. It would create a new tax credit that would go back to homeowners if the value of their property increases and their school district is at the 20-mill floor.
The bill would allow local governments to expand the homestead tax exemption to include people who need help. It would authorize a local Board of County Commissioners the power to provide local homestead tax exemptions to residents that can be used on top of state provided homestead exemptions.
Part of the bill involves transparency and accountability of tax money by local governments. It eliminates the authority of schools to seek substitute levies when new construction is added to the local tax rolls and prevent school districts from taking actions that would increase its property tax levy floor. Some of these limitations would also be applied to levies for other local services.
To make up for property tax revenue they might lose, the bill also allows local communities to raise sales taxes by one percent.
This bill gives more power to County Budget Commissions by allowing them to monitor, review, and adjust levies. It requires county budget commissions to hold hearings if taxing authorities carry over more than 30% in their annual operating budget and could reduce future levies in those cases.
The bill has not yet been assigned to a committee.
