Report: Homeowners could be on the hook for $96 million in Property Tax Rollback payments

Should Republican lawmakers successfully eliminate emergency and substitute school levies, homeowners are likely to still be on the hook for $96 million in Property Tax Rollback payments.

Cleveland.com reported that the rollback payments totaled about $96 million across nearly 200 districts in fiscal 2024. The publication reported that homeowners would pay an additional $1.5 million for the same services they have today without the rollback.

According to the Ohio Department of Education and Workforce, the payments “are made from the state to school districts to reimburse revenue lost due to property tax relief programs granted by the state to taxpayers under the 10% and 2.5% property tax rollback programs and under the Homestead Exemption program.”

“This is an unintended consequence,” North Ridgeville Schools Superintendent Roxann Ramsey-Caserio told Cleveland.com. “You have a number of school districts that would be significantly harmed.”

Added Ramsey-Caserio: “I am sympathetic to taxpayers. I would love to pay less in taxes. But it can’t just be the responsibility of a public school district to pick up the difference.”

Property taxes have become a major issue in Ohio, with ballooning property taxes being reported across the state, and lawmakers have vowed some action. According to Ohio Rep. Jean Schmidt, R-Loveland, Clermont County, for example, witnessed a 43% uptick in property valuations in 2023.

Last month, the Ohio House voted to override Republican Gov. Mike DeWine’s veto of a provision included in Ohio’s two-year budget that would bar local jurisdictions from placing replacement property tax levies and some emergency levies on the ballot for voters to decide. The Ohio Senate has not yet considered the override of the veto, but Senate leaders have indicated that they will do so soon.

DeWine named a working group to explore options to overhaul property taxes after he vetoed four provisions in the state’s two-year operating budget. The group, which includes a mix of elected officials, has until the end of next month to propose ideas to the governor. While it hasn’t yet made any recommendations, it reportedly opposes the idea of capping the property tax collected at 40% of a school district’s operating budget.

“Our objective is to provide as much meaningful property tax relief as we can, particularly to those who need it most, and do it in a way that does not break the bank of the state of Ohio,” former Republican lawmaker Bill Seitz, chair of the working group, said during a recent meeting, WEWS-TV and News5Cleveland.com reported.

Meanwhile, House Bill 89, a measure that would provide temporary property tax reduction relief, is pending before the House Ways and Means Committee. It would apply to properties that have had the same owner from Jan. 1, 2022, to Dec. 31, 2024.

“My office has heard from many people inside and outside of Clermont County about how they are hurting from these increases,” Schmidt said in prepared sponsor testimony.

“They feel it most in their wallets because they are paying a far higher property tax than they’ve seen before. I hear how some people have to move so they can afford to own a home, while others are afraid they cannot afford their groceries or other necessities because they have to pay their property taxes,” he added.

“…Passing House Bill 89 would give the legislature time to make the longer-lasting, large-scale changes to remedy this problem for good,” Schmidt continued. “This bill would also communicate to our constituents that we are taking their struggles seriously and actively working to create lasting change. I encourage all the members of this committee to push relief forward.”