‘Every single idea is fraught with complexities’: A look at the solutions to Ohio’s skyrocketing property taxes

A working group appointed by Republican Gov. Mike DeWine has floated various ideas for attacking skyrocketing property taxes in the Buckeye State, but a few ideas have bubbled to the top.

Ohio has become a battleground over rising property taxes. However, every idea raises additional concerns, and the major issue of funding Ohio’s schools remains a persistent one.

“Every single idea is fraught with complexities that require a lot of input, and that’s why we’re delighted to have a commission like this,” Bill Seitz, the co-chair of the group, told Spectrum News 1. “Because we’ve got so many different perspectives that can think of things that need to be considered before we make final recommendations.”

Relief Needed

There is seemingly broad support for property tax reform. As is the case with any tax reform, the question centers on the specific proposals and the scope of the reform.

“Ohio families need urgent property tax relief because rising tax bills are squeezing working Ohioans who are struggling to afford their homes,” Donovan O’Neil, state director for Americans for Prosperity-Ohio, told Newsweek.

“The legislature has been on top of this problem for years—holding hearings, listening to hundreds of hours of testimony, and advancing more than 20 major recommendations,” he added. “Many of those reforms were included in the state biannual budget before the Governor’s veto blocked immediate relief.”

Freeze Taxes for Older Ohioans

Cleveland.com reported that lawmakers could also consider freezing property taxes for Ohioans who are 65 or older and earn less than $50,000 per year. According to the report, qualifying property tax owners wouldn’t pay additional taxes as they increase.

Under the proposal, the county auditor would track what they would have owed without the freeze. When the home is sold or after the owner dies, the difference would be due, which raises multitudes of questions.

“I don’t believe it’s tax reform,” Lake County Auditor Chris Galloway said, per Cleveland.com. “It’s kicking the can down the road.”

Tie Increases to Inflation?

Members of the working group have indicated a willingness to tie property tax increases to inflation. When they return to Columbus, lawmakers are likely to consider House Bill 186 or a variant of the proposal.

Seitz previously told Ideastream Public Media that the measure effectively stipulates that “when the rate of increase in property valuations greatly exceeds the consumer price index inflation, these districts would only get the rate of actual inflation, and not the much higher increase caused by the much higher valuations.”

School Funding Remains a Sticking Point

The most significant sticking point could be how to address school funding. According to reports, the group previously opposed the idea of capping the property tax collected at 40% of a school district’s operating budget.

“So generally, districts with greater capacity locally to raise revenue are expected to do so, and they’re getting less money from the state of Ohio,” Ohio Department of Education and Workforce Deputy Chief of Staff Aaron said, per the Ohio Capital Journal. “Districts with lower capacity are getting more of their total revenue from state sources.”

The Nuclear Option

Of course, if all else fails, Buckeye State residents could soon consider a citizen-led ballot measure that, if passed, would eliminate property taxes altogether. Attorney General Dave Yost previously called on elected county officials to form a coalition to address property taxes before Ohioans vote to eliminate them.

According to a news release, Yost told the Ohio Council of County Officials that property taxes in the Buckeye State increased by nearly 19%, or roughly $3.8 billion, between 2020 and 2024.

“I had a local government official — a moderate local government official — who said to me after I got named to this, ‘I hope you come up with a solution, because I’m going to sign the petition if you don’t,’” Tiberi told the Ohio Capital Journal.