Thomas introduces Truth in Guaranteed Tax Rate Legislation

COLUMBUS - State Representative David Thomas (R-Jefferson) introduced the Truth in Guaranteed Tax Rate bill as his third piece of legislation this week to work to reform Ohio’s property tax system. 

The act would ensure levies, which voters approve for school districts, are counted towards the minimum guaranteed tax rate that Ohio’s public schools receive. 

“This is a major change of property tax policy for Ohio, and I do not introduce it lightly,” said Thomas. “The current way we calculate the 20 Mill Floor or 2% of district value tax rate is not voter friendly or accurate.” 

The Representative’s bill would count emergency levies, and the revenue raised by school district income tax, as the tax rate counted towards the 20 Mill Floor guaranteed tax rate school districts receive. The legislation would also prevent schools from moving portions of their inside millage to cause unvoted increases due to allocation changes. 

Representative Thomas says he is open to working with schools and impacted groups to get the policy right.

“This is very complicated stuff,” said Thomas. “The goal is to lower the unvoted increases and help taxpayers to understand what they are doing when it comes to votes made and dollars spent that are guaranteed.”

This legislation would impact roughly 25% of school districts in largely rural, lower socio-economic communities which have passed emergency levies in addition to receiving the minimum guaranteed tax rate. As a result, Rep. Thomas is pushing for additional state sales and income tax dollars to be spent for public schools to offset decreases in property tax revenue. 

“I’ve spent a lot of time talking with public school leaders recently and I feel for their concerns that this would negatively impact students and school budgets and I certainly do not want to hurt students,” said Thomas. “But I cannot justify to the taxpayers that they have a minimum guaranteed unvoted tax rate to pay to schools and then they pay more for other emergency levies that continue to be pushed.” 

The introduced legislation is not final according to Rep. Thomas and he anticipates change through the committee process and welcomes feedback. He’s also working on another bill targeting the 20 Mill Floor alongside fellow former County Auditor Rep. Jim Hoops (R-Napoleon) and hopes to have that legislation out soon. 

Thomas says while the two bills would not cancel each out, he is hopeful his work separately with Rep. Hoops will be the main anchor of reform to help taxpayers this year.

“All of our goals center around property tax relief that lowers unvoted increases, gives transparency to the taxpayer, and provides direct help to those who need it most,” said Thomas. “This bill is one of many that gets at the system in meaningful ways."