Ohio Lawmakers ⁤Eye Five ⁤Key Moves⁤ to Deliver ⁢Property Tax Relief

COLUMBUS, OH – Facing mounting pressure from homeowners burdened⁢ by ‌rising⁤ property taxes, Ohio lawmakers are considering a series of notable‌ reforms aimed at⁢ providing considerable relief. A surge in tax abatements adn Tax ‌Increment⁤ Financing (TIFs) granted to developers – ballooning ⁢from ​$9.8 billion in 2014 to‍ $19.3 billion in ‍2022 – has shifted the tax burden‌ onto residential property owners, sparking calls for immediate action. These potential changes come as Ohioans grapple ⁣with increasing costs of living‍ and seek greater financial stability.

The escalating property​ tax burden isn’t tied to complex millage calculations⁤ or levy wording, but rather a ⁤growing trend of prioritizing tax breaks for ‍development 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 ​reform, the routine granting of these exemptions is⁣ fundamentally reshaping OhioS​ tax ​landscape. here are‍ five key moves state lawmakers are weighing to address​ the issue and provide relief to Ohio homeowners:

1. Curtail Tax abatements & TIFs⁢ for Greenfield ⁣Development: ‍ A central focus is limiting​ the use of⁤ tax abatements and ​TIFs​ to genuinely blighted ⁢areas requiring ⁣redevelopment. Currently, these incentives are frequently applied to⁤ “greenfield” development – ​projects on previously ⁤undeveloped‍ land – effectively subsidizing ​projects that ‍would​ likely proceed without assistance.Restricting these incentives to areas demonstrably in need of revitalization ⁣could free up significant tax revenue. as Honeck stated to the committee, ‌these⁢ incentives “have⁢ become‍ routine and used even for​ greenfield development.”

2. Increase Clarity in ​Abatement & TIF Approvals: Currently, the⁢ process for granting tax abatements ‌and TIFs lacks consistent ⁣transparency. Lawmakers ⁣are exploring measures to require more detailed public reporting on ‌the financial impact⁤ of these incentives,including projected revenue losses and the specific benefits offered to⁣ developers.Greater transparency would allow for more informed public debate and scrutiny of these deals.

3. Re-evaluate Property ⁢Valuation Methods: Concerns have been⁣ raised about the accuracy and ‍fairness of‍ property valuation methods used for tax purposes. Legislators are considering a review of these methods, potentially ‌incorporating factors that better⁤ reflect market realities and ensuring consistent submission ⁣across counties. This could⁣ involve updating appraisal ⁢techniques or increasing the frequency of property reassessments.

4. expand Homestead ⁤Exemptions: Ohio’s homestead Exemption provides tax⁤ relief to homeowners, particularly⁤ seniors and those⁣ with disabilities.‍ ⁣ Expanding eligibility ⁢criteria or⁣ increasing the exemption amount could offer⁢ direct ⁤relief ‌to a larger⁣ segment⁣ of the population. This is a politically popular option with a direct and visible impact on homeowners’⁣ tax bills.5. Implement a Circuit Breaker Program: A “circuit breaker” program would cap property taxes as a percentage‍ of household income, providing ⁢relief 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, ​offering a safety ⁣net for those on fixed incomes or facing ‍financial hardship.

These proposed changes ‌represent a significant⁢ shift in approach⁢ to property taxation in ⁢Ohio. The General Assembly Joint Committee on Property Tax Review and ⁣Reform is expected to continue its deliberations ⁤throughout the fall, with potential legislation ⁤introduced in early 2025. The outcome of these discussions will have a profound impact on the financial well-being‍ of Ohio homeowners for years to come.