Ohio auditors testify on property tax relief

COLUMBUS, Ohio (WKBN) – A group of county auditors testified Wednesday before the Ohio General Assembly’s Joint Committee on Property Tax Review and Reform.

County auditors from Ashtabula, Franklin and Green counties spoke to the panel about ways to ease the property tax burden for Ohioans. All three are members of the County Auditor’s Association of Ohio.

They laid out a series of proposals including expansion of the Homestead Program, targeted relief for low to moderate-income residents and tax breaks for owner-occupied homes, among others.

Ashtabula County Auditor David Thomas said that county auditors have been on the frontlines of property taxes for years and have witnessed the effect of state cuts that shift the financial burden to property taxes.

“The State of Ohio has cut the income and other taxes dramatically over the years, which is reasonable, but if we aren’t cutting spending at the state level, that burden to fund local services gets placed at the local level where,” he said. “Those who may not benefit from income tax cuts such as seniors, now pay a higher share of the new burden through property taxes.”

Increased property values are also part of the equation. While they signal growth and investment, they also place an additional burden on taxpayers.

The County Auditor’s Association said that the property price hikes post-COVID are not “anomalies” as they had been characterized and that they show the flaws in Ohio’s property tax system and the need for policy change.

“Ohio needs a menu of options so that the needs of each community and each resident can best be met while recognizing the key role property tax plays in supporting government services,” said Franklin County Auditor Michael Stinziano.

Local and state leaders continue to examine property valuations in Mahoning, Trumbull and Columbiana counties that led to higher property tax bills causing a lot of unhappy residents. There are several pending bills to address the issue including the Ohio Property Relief Act, which would provide relief to homeowners and farmers.

The auditors testifying Wednesday laid out the following proposals:

• Expand the Homestead Program: Current law exempts taxes on the first $26,200 of property valuation for individuals 65 or older or permanently disabled who have an Ohio Adjusted Gross Income of $36,100 or less. The CAAO proposes increasing both the valuation that would be exempt from property taxes and the income threshold so that more individuals can qualify for the program. This will allow some of our most vulnerable Ohioans to stay in their homes.
• Eliminate the Non-Business Credit and Expand the Owner Occupancy Credit: The State of Ohio pays a portion of qualifying property tax levies on behalf of residential and agricultural property owners, providing a 10% credit. The Non-Business Credit provides a 10% credit to all property owners with residential or agricultural properties, and the Owner Occupancy Credit provides a 2.5% credit to properties that are both owned and occupied as the individual’s primary residence. The CAAO would propose eliminating the Non-Business Credit as it often benefits for-profit owners, while expanding the Owner Occupancy Credit to a meaningful credit that would provide real tax relief to those homes that are owner-occupied.
• Limit the Growth in Revenue Received by School Districts Due to Reappraisal Changes: Under Ohio law, school levies are subject to a floor that will not allow the tax rate to be adjusted downward when reappraisal increases occur. The CAAO proposes eliminating this hard cap on rate reductions and, instead, limiting growth on certain school levies to an inflationary index, containing revenue growth for districts operating at the 20-mill floor. As a result of this most recent valuation increase, many of the school districts operating at the floor received revenue increases in excess of 20%.
• Create a menu of targeted relief: Create tax relief programs aimed to protect low to moderate-income residents. These programs could include tax deferrals, income tax credits, or abatements based on a long-term resident’s inability to pay the ever-increasing tax burden.

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