Two property tax measures passed in the Ohio House of Representatives may not save taxpayers as much as proponents believe, especially in Franklin County, Auditor Michael Stinziano said.
Even if the bills limiting automatic property tax increases make it into law, they won’t do much for Franklin County taxpayers, said Stinziano, a Democrat. Two of his Republican colleagues in surrounding counties, Licking County Auditor Michael Smith and Delaware County Auditor George Kaitsa, were more pleased with the bills but still want more reforms.
“I support both bills that have been passed,” Kaitsa said. Still, he said the bills represent one step and more property tax reform is needed.
Smith said he hasn’t looked at the final wording but doesn’t believe the concepts legislators were talking about will move the needle in a large way for taxpayers.
The auditors were reacting to Ohio House Bills 186 and 335, which passed on Oct. 22 with some Democrats’ support and would tie future property tax increases to inflation, not just soaring property values.
It’s the latest attempt by state officials to address frustrated homeowners who saw property taxes spike in recent yearsafter reappraisals. The bills still need to pass the Ohio Senate, go through conference committee, and be signed by the governor to become law, and could change at any step in that process, Stinziano pointed out.
Republicans claimed the bills could save taxpayers more than $2 billion over three years as they seek to stop a proposed constitutional amendment that would abolish all property taxes for schools and other services.
“House Bills 186 and 335 represent the most significant modernization of Ohio’s property tax system in decades,” said Rep. Bill Roemer, R- Richfield, in a GOP press release.
Stinziano said the victory lap is premature and he doesn’t think these two bills will be enough to convince people who don’t want to pay property taxes.
What would Ohio House Bills 186 and 335 do?
Current law prevents property tax bills from increasing as property values rise, with notable exceptions that both bills seek to control.
House Bill 186 involves the 20-mill floor for school districts, a state requirement that doesn’t allow a school district’s funding to go below 20 mills. The bill would cap future increases for districts at the floor to the inflation rate if property values increase by more. Most districts at that 20-mill floor are in rural areas and small towns, not the big districts in Franklin County, where millage rates are higher.
House Bill 335 focuses on inside millage, up to 10 mills, which the Ohio Constitution allows local governments to collect on a property without voter approval. The bill also would limit the growth of inside millage to inflation.
What central Ohio auditors think
“In Franklin County, HB 186 does nothing because we are not at the 20-mill floor,” Stinziano said. “HB 335 may have an impact, may not, but it’s probably not going to be across the board, a very large one.”
There are four school districts, mostly outside of Franklin County, at the 20-mill floor: Jonathan Alder, Madison-Plains, Licking Heights and Teays Valley. The rest of the districts in the county collect taxes above the 20-mill floor.
While more than 75% of Ohio’s 611 school districts are at the 20-mill floor, Stinziano said those districts are small in population.
All of Licking County’s districts, except Granville, are at the 20-mill floor, according to Smith. So House Bill 186 could prevent windfalls in tax revenue for Licking County districts when houses are reappraised.
In Delaware County, three school districts were at the 20-mill floor in 2023: Delaware City Schools, Big Walnut Local Schools and Buckeye Valley Local Schools. Buckeye Valley is no longer on the floor. House Bill 186 would calculate a tax credit that takes 2023 and 2024 into account, not just upcoming years.
Kaitsa said he’s glad the legislature introduced a provision to provide $468 million to school districts that would otherwise lose revenue because of the tax cuts.
Taxpayers in the Olentangy Local School District, Delaware County’s largest school district, would not see any relief.
On HB 335, Stinziano said his office is still running the numbers and he doesn’t know what inflation will look like in 2027 when it starts to kick in, but he doesn’t expect much change.
Smith pointed out that almost all property taxes are voted on in Ohio, and inside millage only makes up maybe one-fifth or one-sixth of a property owner’s tax bill.
What reforms auditors would still like to see
Stinziano said he supports a circuit-breaker bill model that wouldn’t allow an individual property’s taxes to rise by more than a certain percentage each year.
Stinziano, Smith and Kaitsa said they support increasing the benefit from the homestead credit, which reduces property taxes for low-income seniors and other qualifying individuals, like people who are permanently disabled.
Kaitsa said he’d like to see the income requirement on the homestead credit raised to include higher earners or go away. Ohio didn’t have an income threshold for the credit until 2013, he said.
“Really, where some targeted relief is needed is our senior citizens,” Kaitsa said.
Government and politics reporter Jordan Laird can be reached at jlaird@dispatch.com. Follow her on X, Instagram and Bluesky at @LairdWrites.
This article originally appeared on The Columbus Dispatch: Central Ohio county auditors say victory lap premature on property tax bills, more needed
Reporting by Jordan Laird, Columbus Dispatch / The Columbus Dispatch
USA TODAY Network via Reuters Connect
