Representatives David Thomas and Daniel Troy Provide Sponsor Testimony on Legislation to End the Sale of Delinquent Property Tax Certificates

State Representatives David Thomas (R-Jefferson) and Daniel P. Troy (D-Willowick) on Wednesday provided sponsor testimony during House Local Government Committee on House Bill 493, legislation to ban the sale of delinquent property tax certificates beginning in January 2027.

Under current Ohio law, when a homeowner fails to pay their property taxes on time, the county treasurer is permitted to sell the delinquent property tax certificate to a private third party. While this practice allows counties to recover partial revenue from unpaid taxes, it often imposes severe financial hardship on homeowners who are already having a difficult time paying for their essential needs.

“No one should profit off the foreclosure of a home. No one,” said Rep. Thomas in his testimony. He also shared that he was told this was something that needed worked on when he was a part of the Payday Loan Reform Coalition in 2017. “Fast forward eight years, and our property tax system is in crisis, tax delinquencies are through the roof, and those falling victim to these profit schemes are growing.” 

“Too many Ohioans are currently struggling to meet their property tax obligations, and recent increases in property valuations have only made it more difficult for many of our citizens to pay their property taxes in a timely manner,” said Rep. Troy. “Allowing these delinquent tax certificates to be sold to third-party collection agencies only increases the pain felt by our homeowners, leaving them with mounting debt and the threat of foreclosure hanging over their heads. We need our local officials to work with them to mediate and resolve their delinquency, not hire predatory third parties to harass them.”

These private third parties often charge homeowner high interest rates and additional fees, which can quickly grow far beyond the original tax bill that the homeowner was already unable to pay to the county. They are even permitted to foreclose on the property for missed payments, allowing them even greater profit at the homeowner’s expense.

Rep. Thomas also emphasized that county treasurers already have other tools and options available to work with delinquent homeowners, such as payment plans and other forms of mediation, and should be encouraged to use these more constructive solutions rather than turning to private entities focused on profit. H.B. 493, he noted, is about ensuring local governments prioritize cooperation and community stability over collections and commissions.

H.B. 493 now awaits a second hearing in the House Local Government Committee.