Reps. Sweeney & Troy Respond to Majority Report on Property Tax Review & Reform

COLUMBUS – State Reps. Bride Rose Sweeney (D-Cleveland) and Daniel P. Troy (D-Willowick) today responded to the report issued by the Joint Committee on Property Tax Review and Reform. Created by House Bill 33 of the 135th General Assembly, the 10-member, bipartisan, bicameral committee was tasked with reviewing the history and purpose of all aspects of Ohio’s property tax law and making recommendations. The following statement may be attributed to Reps. Sweeney and Troy:

“Nearly two years ago we advocated for the creation of the Joint Committee on Property Tax Review and Reform and the swift passage of property tax relief targeted directly to those who need it most. We applaud the work of the Joint Committee, its members and their staff, as well as those who came forward to testify. However, the truth is, we did not need a report to tell us there are real, immediate steps that can be taken by the General Assembly to provide tangible relief to homeowners while protecting essential services like public schools, first responders, mental health treatment, veteran and senior care, etc.

High property taxes are the result of both the choices that the legislature has made and the ones it has failed to make. Ohioans vote on levies more often than any other state in the country, yet other states boast stronger property tax relief programs. In the last decade alone, Ohio lawmakers have eliminated the 12.5% rollback that used to lower all levies, allowed the homestead exemption to be eroded by inflation, and cut local government funding in half. When the state decides to pay less, it results in our communities either paying more or having to cut services. It is time for the state to pay its fair share of property tax relief instead of continuing to expand local levy reliance. The most impactful proposals would cost less than 1% of the state’s $95 billion dollar budget.

The state should fund additional, means-tested property tax relief that is targeted to seniors and working people. Significantly enhancing the homestead exemption would lower costs for seniors and allow them to age in place with the dignity they deserve. Despite Ohio’s population continuing to age over the last decade, the number of seniors receiving the homestead exemption has gone down and the amount of the exemption has provided less and less relief as home values have gone up. Enacting a property tax circuit breaker would provide up to a $1,000 rebate to help more working Ohioans afford their property tax bills. Restoring the 12.5% rollback with a means test would further cut property taxes in all of our communities.

While it is refreshing to see continued, bipartisan support for increasing the homestead exemption and authorizing a property tax circuit breaker, the fact of the matter is that these are not new ideas and the Republican majority has chosen not to prioritize them for many years. Democrats have been introducing legislation to enhance the homestead exemption for over two decades. Amid the largest increases in property values since the 1970s, it is abundantly clear that Ohioans need help now and lawmakers should get serious about providing direct relief to taxpayers without jeopardizing the services they rely on.

We believe that the Report represents a missed opportunity to build consensus and lay the groundwork to finally deliver long-overdue property tax relief for Ohioans on fixed-incomes and lower incomes. We echo the dissent of Majority Co-Chair Sen. Blessing regarding a number of concerning proposals, which do not reflect our views nor the views of the Democratic Caucus. We should strive for a property tax system that is less regressive and fairer for all taxpayers. Several of the Majority’s recommendations fall short of that goal and, if implemented, would be detrimental not only to taxpayers but also the critical public services that form the bedrock of our communities and civil society as we know it.

The Report included recommendations that would manipulate the property tax system, often to the benefit of the wealthiest property owners. Artificially lowering the sales ratio to set values, eliminating statewide uniform oversight, and further limiting property value appeals to get values right for the most expensive properties all make our system less accurate, fair, and transparent. Any reduction these proposals achieve will mostly benefit multi-million-dollar property owners and fail to keep Ohioans in their homes.

The Report also included recommendations to make levy and tax changes that double down on undermining essential services without helping Ohioans stay in their homes. Proposals to change how levies are put on the ballot, what can be voted on, and how school levy rates are calculated will not lower rising costs for most Ohioans and will harm our communities’ ability to support public schools, maintain police and fire departments, clear snow and fix potholes, and care for our veterans and seniors.

The intent of the property tax study committee was not only to educate members of the General Assembly on a very complex subject, but also to follow up with a robust discussion of where we could reach agreement on concrete recommendations for legislative action. Concluding our work without this exercise is a missed opportunity for members to have a chance to find consensus among themselves. It leaves us where we started in the first place, and that is with no agreed upon, collectively reasoned path on which to proceed. Ohioans deserve a clear path to property tax relief now, not a laundry list of proposals discussed.

Whether it’s keeping the fire station open and police officers on patrol, having teachers in the classroom, or making sure streets are paved and the trash gets picked up, most Ohioans understand the importance of property taxes. Sadly, in our current system many of those same Ohioans face severe hardships and impossible choices as property taxes rise. Efforts to thoughtfully reform Ohio’s 200-year-old property tax system should continue, but we should not wait for the perfect solution to begin to provide meaningful relief to Ohioans.