Rep. Bob Peterson bill forces taxing authorities to be transparent

As state lawmakers look to lessen the blow taxpayers face from burgeoning property taxes, some state lawmakers want local taxing jurisdictions to be more transparent, and they could soon opt to force them.

House Bill 413 would mandate local governments and taxing jurisdictions to disclose their revenue sources and expenditures in a uniform, searchable format, making them available to all residents throughout the state.

“Ohioans, now more than ever, need the ability to see exactly where their tax money is allocated,” state Rep. Bob Peterson, R-Sabina, said in prepared sponsor testimony.

The measure would mandate that political subdivisions enter information about expenditures and revenues on The Ohio Checkbook. The site, created in 2015, allows governments to post information about how they are spending tax dollars for public inspection. However, participation is optional, and only 26%, or 903, of the 3,420 eligible jurisdictions have posted their expenditures on the site, state Representative Tom Young, R-Washington Twp., said in prepared sponsor testimony.

“It seems very simple that, in a world where most people struggle to have faith in their government, that we should open more pathways for citizens to review and understand where their money goes,” Peterson said. “This is an easy and quick way for counties, cities, villages, etc. to provide more information to the people they serve; increasing the trust that citizens have with the organizations that are serving them.

“We understand that this may take time for some political subdivisions to enter the required information into the database, but in the end, we feel it is worth it,” Peterson added. “… Public records, including those about expenditures and revenues, are one way that citizens can be actively engaged in their local government entities by giving their Checkbook a check-up.”

In an op-ed published in the Dayton Daily News, Greg R. Lawson, a research fellow at The Buckeye Institute, argued in favor of the measure, saying it could help address Ohio’s property tax crisis.

“Counties, cities, school districts, public library boards, pension systems, and more than 6,500 taxing jurisdictions statewide would be required to track every dollar they raise and spend and make that ledger easily accessible to the public,” Lawson wrote.

“That may sound unreasonable — but it isn’t. Local governments and jurisdictions should already maintain this information for their accounting purposes, and they do,” Lawson added. “…The proposed legislation merely would make local revenues and expenses immediately accessible online rather than require taxpayers to file elaborate public records requests and wait weeks for a response.”

A Republican Gov. Mike DeWine-appointed working group recently handed down 20 recommendations for alleviating the property tax crisis in the state. Earlier this month, the state House signed off on two measures that proponents say would help Ohio lawmakers address ballooning property taxes.

One issue critics blame for helping increase Ohio’s property taxes is the “20-mill floor,” particularly when combined with rising home values. Currently, school districts must receive at least 20 mills or 2% of their district’s property value in taxes, and roughly 500 Ohio school districts have reached the 20-mill floor.

“Transparency alone will not resolve every property tax challenge,” Lawson wrote. “It will not, for example, reduce the tax burden or solve structural inefficiencies. But transparency is essential for reform.

“Once all local spending is publicly visible, state and local leaders can pursue broader property tax relief and other commonsense policies like requiring county commissioners to approve most property tax levies before placing them on the ballot, eliminating the 20-mill floor so that school districts cannot increase property taxes without a vote, and consolidating local government entities to reduce redundancies and streamline decision-making,” Lawson added.