State legislators come back to work Monday to start a new two-year session of lawmaking. Many have said they want to take up property tax law changes, which didn’t get much movement in the session that ended last month.
And just in time for the new session, a long-awaited list of recommendations has been released from a bipartisan committee that looked into possible changes last year.
The 10-member Joint Committee on Property Tax Review and Reform heard from nearly 50 people in nine meetings, and came up with 21 recommendations. Among them:
- expanding the traditional Homestead Exemption, adding an enhanced exemption for disabled veterans and including means testing
- allowing counties to use a three year average for property valuations
- passing a "circuit breaker" in the form of a refundable income tax credit when property taxes exceed 5% of an occupant’s income
- eliminating replacement levies and reducing the maximum term and renewal options for emergency, substitute, and continuous tax levies
- reviewing tax abatements and property tax exemption programs for their effectiveness and potential misuse
- lowering from 90% to 85% the acceptable percentage of market value that's used when calculating market value changes during a mass appraisal sales ratio assessment
- adopting a property tax deferral program
There are also recommendations for more public meetings and a simplified process of passing and collecting property taxes, plus more transparency in clarifying terminology and simplifying ballot language. And the list includes a recommendations for lawmakers to consider putting an amendment to the Ohio Constitution before voters that would give lawmakers more flexibility in changing property tax laws.
The two Senate Democrats on the committee praised the release of the list, stressing the urgency of passing some changes.
Sen. Hearcel Craig (D-Columbus) said in a statement he intends to reintroduce the circuit breaker proposal, and Sen. Bill DeMora (D-Columbus) said he plans to introduce a property tax freeze for eligible homeowners such as seniors and veterans.
“Access to safe and affordable housing is a serious concern for the residents of the state of Ohio," said Craig. "It is imperative that the Ohio Legislature focus on creating housing policies and initiatives that support families and children. Housing is a foundational and fundamental human right that must be protected at all costs. I will continue to fight for affordable and quality housing as well as affordable property taxes.”
But Sen. Bill Blessing (R-Colerain Twp.) said he had "deep concerns with a number of the recommendations."
In a statement, Blessing described the committee members as being in two camps: "The first camp, broadly speaking, does not want to spend any state dollars - the locals will bear the burden, or future local revenue will be foregone - and the relief, by and large, must be an across the board cut: if someone gets a 10% property tax break on their $200k home then the same 10% break should apply to someone on their $2M home. The second camp wants to spend state dollars and means-test the relief. Here, local governments and school districts will be held harmless and relief will be targeted to low and middle income Ohioans. In short, the disagreements are over who pays and who benefits. I am in the second camp."
