Rep. Rader Urges Lawmakers to Pass Property Tax Relief, Warning of a "$20 Billion Budget Bomb"

COLUMBUS – State Rep. Tristan Rader (D-Lakewood) today released a legal memo from the nonpartisan Ohio Legislative Service Commission (LSC) that details the devastating consequences of a proposed constitutional amendment to eliminate property taxes in Ohio.

The LSC findings reveal that repealing property taxes would blow a $20 billion hole in Ohio’s budget, gutting public schools and decimating local services across the state.

“Property taxes aren’t just numbers on a bill, they’re the backbone of our communities,” said Rep. Rader. “They fund our schools, fire and police departments, libraries, parks, and senior centers. Eliminating them would not be relief, it would be chaos. This reckless proposal is a budget bomb that would destabilize Ohio and force families to pay even more in different, less fair ways.”

According to the LSC analysis:

• Property taxes generated more than $2 billion in 2024, with nearly two-thirds dedicated to public schools.
• Eliminating property taxes would shift billions of dollars onto utility companies, who would pass those costs on to consumers through higher gas and electric bills.
• Replacing property taxes with higher state income taxes would raise only $3.6 billion per year—covering just 15% of the loss. That leaves a staggering $17B annual shortfall.
• Local schools, which receive 95% of their operating revenue from property taxes, would face massive cuts, forcing larger class sizes, fewer teachers, and reduced support for kids.
• Local governments would be left scrambling, with likely increases in sales taxes, income taxes, and other fees pushed onto voters.

“If this amendment passes, Ohioans will see gutted schools, higher utility bills, and desperate local tax hikes. That’s not tax relief, it’s sabotage,” continued Rep. Rader. “Ohioans deserve fair, sustainable solutions to strengthen our schools and communities, not reckless schemes that shift costs and hurt working families.”

Meanwhile, Governor DeWine’s Property Tax Working Group delivered their list of 20 recommendations for how to address the ongoing crisis. Rep. Rader acknowledged the effort to review Ohio’s broken property tax system, but criticized the recommendations as falling far short of the real relief homeowners and renters desperately need.

“Ohio families are being crushed by skyrocketing property taxes,” said Rep. Rader. “The Working Group’s recommendations shuffle oversight processes and rename levies, but they don’t get at the heart of the crisis: families are being taxed out of their homes. Ohioans deserve real solutions like expanding the Homestead Exemption and implementing a Property Tax Circuit Breaker, both recommendations which were relegated to the bottom of the Working Group’s report rather than prioritized.”

The Working Group’s top recommendations include:

• Delaying Levy Reductions: County Budget Commissions would be permitted to reduce “unnecessary” or “excessive” levies only after five years, leaving homeowners without immediate relief.
• Capping Local Reserves: Taxing districts would face a cap on carryover balances but could still stockpile reserves if justified to oversight boards.
• Renaming Levies: Substitute and emergency levies would be rebranded as “fixed-sum levies,” a change touted as transparency but with little impact on tax burdens.
• Adding Oversight: Non-elected boards would need County Commissioner approval to place levies on the ballot, increasing oversight without lowering taxes.
• Closing the LLC Loophole: Wealthy investors and corporations would no longer be able to dodge taxes through LLC transfers, a step toward fairness but one that doesn’t directly lower bills for Ohio families.

“Ohioans don’t need more delays and bureaucracy, they need to know their property taxes will be affordable, fair, and not force them out of the homes they’ve lived in for years or even decades,” said Rep. Rader.

Rep. Rader pledged to continue fighting for property tax reform that puts families first.

EDITOR’S NOTE: For further information, a copy of the full LSC legal analysis and Property Tax Working Group report are attached.