Representatives David Thomas and Chris Glassburn introduce Residential CRA Reform to Benefit Taxpayers

State Representatives David Thomas (R-Jefferson) and Chris Glassburn (D-North Olmsted) recently introduced House Bill 154, Residential Community Reinvestment Areas Reform, as the newest piece of legislation for Property Tax Reform in this General Assembly. 

House Bill 154 would end the current practice of residential housing developments receiving 100% property tax abatements which has caused increased tax rates and burden onto other taxpayers. 

“We believe strongly that current property taxpayers should not shoulder the cost of new developments,” said Representative Glassburn. “This bill is a good middle ground that will still give tools to developers but not pass along higher taxes to others.”

This legislation models language of current Residential TIFs (Tax Incremental Financing) which is another tool used by local governments to collect fees in lieu of taxes to finance economic development and residential housing projects. This also requires local school districts to be part of the conversation on the amount of tax abatements given to new developments. 

“With new homes there are more students in schools and higher costs to the surrounding taxpayers which means more taxes to the current property owners,” said Representative Thomas. “Folks are voting for levies and using services, so they should be contributing to the tax base and helping lower the surrounding property owners’ bills.” 

School districts are the largest portion of the tax bill and would be the most likely to have increased costs to current property owners when a 100% abatement is given. This bill will allow for growth and new housing as a large portion of the new housing’s property tax bills can still be abated just as is currently done with Residential TIFs. 

“We hear from taxpayers often about their displeasure at full property tax abatements and I actually think the idea of this bill to have new homes paying into the schools right away will help to lower the animosity towards new housing developments,” said Representative Thomas. 

The bill’s sponsors speak to the complexity and impact across Ohio the issue of 100% property tax abatements have. Glassburn, a Cuyahoga County Democrat, and Thomas, an Ashtabula County Republican, both have experienced the impact of higher tax rates and expenses due to new housing developments that are 100% abated in their roles as local government officials. 

Property Tax Reform bills are continuing to be introduced weekly in this General Assembly as the issue remains top of mind for many lawmakers. Thomas has been pleased with the speed of legislation and anticipates movement and votes on many bills soon.