Ohio is trying to tie property tax increases to inflation
Rising property taxes have recently sparked fierce debate among Ohio lawmakers and citizens.
That discourse included proposals to eliminate property taxes entirely, with similar conversations taking place in Florida.
Invoice specifications
The two measures — House Bill 186 And House Bill 335 — address what is known as outside and inside millage.
Under the state constitution, counties can levy up to 10 mills, or 1%, in property taxes without voter approval (inside millage). Any taxes above that must go to the voters (beyond the millage).
HB 186 would limit outside sales growth to the rate of inflation. Lawmakers amended the bill after opposition from schools concerned about funding losses.
“What they actually lose in terms of less property tax revenue, we will supplement that amount to the tune of roughly $360 million from the sales tax holiday fund,” said Rep. David Thomas (R), the bill’s sponsor. “To essentially keep schools going until their next revaluation.”
HB 335, which addresses internal millage, allows counties to replace property tax revenues with local income taxes, expanding an option previously limited to local sales taxes.
Thomas said safeguards have been added to prevent local governments from lowering factory prices only to later restore them after raising other taxes.
‘It’s like pouring a cup of water on a forest fire’
In the House of Representatives, supporters argued that the reforms were needed to protect homeowners from steep tax increases tied to rising property values.
“People are angry about the spikes,” said Rep. Bill Roemer (R). “We don’t want to see the spikes – 20%, 30%, 40%, 50% – when people’s social security benefits could increase by 2.9%.”
House of Representatives Democrat Daniel Troy argued that the measures would not prevent calls for a broader constitutional overhaul of property taxes, calling the legislation “like pouring a cup of water on a forest fire.”
Some Republicans also expressed caution. Rep. Mike Odioso said one district in his area could still face a $1.5 million shortfall in two years, even with the state supplement.
Thomas defended the bills as a permanent solution to volatile tax increases. He estimated that homeowners would otherwise have to pay $1.7 billion more in property taxes over the next three years.
“Once your bill has peaked, it will never rise again,” he said.
