The Ohio House voted overwhelmingly to approve two property tax related bills similar to provisions Gov. Mike DeWine vetoed in the state budget in June. Schools have raised concerns about the bills that lawmakers from both parties approved, which sponsors say would bring property tax relief to struggling homeowners.
Republicans and Democrats approved House Bill 129, to allow emergency and substitute levies to be used to calculate a school district’s effective tax rate. Those levies haven't been part of that calculation under House Bill 920, which was approved in 1976 to prevent rising home values from creating unvoted tax increases on homeowners by reducing the property tax rate in proportion to increases in property value. But there’s an exception that guarantees a school district’s effective tax rate can’t fall below 2% of a home’s assessed value or 20 mills, which is known as the 20-mill floor.
Rep. David Thomas (R-Jefferson) sponsored the bill, which he said will immediately raise 237 districts off the 20-mill floor and give homeowners in those districts needed property tax relief.
“We've created those rules, those laws, and it's only natural that our local government and our local entities would use the regulations that we've set in place. But today, what we're saying is no more," said Thomas. "We are not cutting. We are not slashing. We are protecting our taxpayers in the state of Ohio."
Rep. Dan Troy (D-Willowick) voted for that bill but noted most taxpayers won’t benefit. He added that the state needs to address that and not put the task of creating property tax relief all on schools.
"The state needs to put more skin in this game. We need to step up rather than say, okay, the sacrifice is all going to have to be made at the local level," Troy said, calling on lawmakers to double the homestead exemption for seniors and disabled Ohioans or enact a property tax circuit breaker. A recent report suggested a circuit breaker bill to provide tax relief for people with incomes up to $70,000 would cost the state $520 million if it made up the loss of property tax revenue to schools and local governments.
Nineteen Democrats supported the bill, along with all Republicans except Reps. Gayle Manning (R-Avon) and Scott Oelslager (R-North Canton).
The House also voted to approve House Bill 309, to allow county budget commissions to reduce millage in voter-approved levies. That bill was also similar to a budget provision DeWine vetoed, and was also sponsored by Thomas.
"It takes off the handcuffs," said Thomas. "We are recertifying in black and white stone that the budget commission has this ability, that the burden of proof should be on the government to prove that they need the tax money and that the authority is here."
House Bill 309 was approved by all Republicans and by 13 Democrats. Nineteen Democrats, including Minority Leader Dani Isaacsohn (D-Cincinnati), voted against it.
"What taxpayers have been telling us loud and clear we are being overtaxed on property taxes. Our property taxes are too high and these bills do not give them relief. And they don't solve the long term property tax problem," Isaacsohn told reporters. "So whether they have other, things, you know, merits, fine. But they are not addressing the core issue."
Both bills go on to the Senate.
