Ohio Lawmakers โคEye Five โคKey Movesโค to Deliver โขProperty Tax Relief
COLUMBUS, OH – Facing mounting pressure from homeowners burdenedโข by โrisingโค property taxes, Ohio lawmakers are considering a series of notableโ reforms aimed atโข providing considerable relief. A surge in tax abatements adn Tax โIncrementโค Financing (TIFs) granted to developers – ballooning โขfrom โ$9.8 billion in 2014 toโ $19.3 billion in โ2022 – has shifted the tax burdenโ onto residential property owners, sparking calls for immediate action. These potential changes come as Ohioans grapple โฃwith increasing costs of livingโ and seek greater financial stability.
The escalating propertyโ tax burden isn’t tied to complex millage calculationsโค or levy wording, but rather a โคgrowing trend of prioritizing tax breaks for โdevelopment projects, often on previously undeveloped land, at the expense of homeowners. According to testimony before the General Assembly Joint Committee on Property Tax Review and โreform, the routine granting of these exemptions isโฃ fundamentally reshaping OhioSโ tax โlandscape. here areโ five key moves state lawmakers are weighing to addressโ the issue and provide relief to Ohio homeowners:
1. Curtail Tax abatements & TIFsโข for Greenfield โฃDevelopment: โ A central focus is limitingโ the use ofโค tax abatements and โTIFsโ to genuinely blighted โขareas requiring โฃredevelopment. Currently, these incentives are frequently applied toโค “greenfield” development – โprojects on previously โคundevelopedโ land – effectively subsidizing โprojects that โwouldโ likely proceed without assistance.Restricting these incentives to areas demonstrably in need of revitalization โฃcould free up significant tax revenue. as Honeck stated to the committee, โtheseโข incentives “haveโข becomeโ routine and used even forโ greenfield development.”
2. Increase Clarity in โAbatement & TIF Approvals: Currently, theโข process for granting tax abatements โand TIFs lacks consistent โฃtransparency. Lawmakers โฃare exploring measures to require more detailed public reporting on โthe financial impactโค of these incentives,including projected revenue losses and the specific benefits offered toโฃ developers.Greater transparency would allow for more informed public debate and scrutiny of these deals.
3. Re-evaluate Property โขValuation Methods: Concerns have beenโฃ raised about the accuracy and โfairness ofโ property valuation methods used for tax purposes. Legislators are considering a review of these methods, potentially โincorporating factors that betterโค reflect market realities and ensuring consistent submission โฃacross counties. This couldโฃ involve updating appraisal โขtechniques or increasing the frequency of property reassessments.
4. expand Homestead โคExemptions: Ohio’s homestead Exemption provides taxโค relief to homeowners, particularlyโค seniors and thoseโฃ with disabilities.โ โฃ Expanding eligibility โขcriteria orโฃ increasing the exemption amount could offerโข direct โคrelief โto a largerโฃ segmentโฃ of the population. This is a politically popular option with a direct and visible impact on homeowners’โฃ tax bills.5. Implement a Circuit Breaker Program: A “circuit breaker” program would cap property taxes as a percentageโ of household income, providing โขrelief to homeowners who are particularly burdened by rising taxes. This approach ensures that no homeowner pays an excessive amount of their income towards property taxes, โoffering a safety โฃnet for those on fixed incomes or facing โfinancial hardship.
These proposed changes โrepresent a significantโข shift in approachโข to property taxation in โขOhio. The General Assembly Joint Committee on Property Tax Review and โฃReform is expected to continue its deliberations โคthroughout the fall, with potential legislation โคintroduced in early 2025. The outcome of these discussions will have a profound impact on the financial well-beingโ of Ohio homeowners for years to come.