The Ohio House overwhelmingly passed two property tax related bills that backers say will provide more than $2 billion in tax relief over the next three years. While some lawmakers are praising the bills and the money the state is putting in, some lawmakers say they don’t go far enough.
House Bill 186 would cap property tax revenue growth for homeowners in more than three quarters of districts at what’s known as the 20 mill floor. It would also provide a credit for increases they’ve paid in the last two years. The state will kick in
$306 million to cover those costs, with the money coming from the fund that would be used to expand the sales tax holiday next year.
House Bill 335 increases on the first ten mills of property tax, known as inside millage. That's a change from how the bill started. Initially, it proposed to eliminate inside millage entirely, with sponsors claiming it would save property taxpayers $3.5 billion. Schools groups blasted the idea, saying the bill would lead to the loss of 20,000 teacher jobs, or 20% of the state's education workforce.
“This is the greatest compilation of property tax reform in the last 50 years or maybe longer," said Rep. Bill Roemer (R-Richfield), one of the co-sponsors of both bills. "The thing that we hear most from our constituents is not 'I don't think I should be paying property taxes at all.' There are definitely people that say that. But most of what people say is 'we think that we can't afford those massive spikes'."
All the votes against the bills came from Democrats, though several voted for them, including Rep. Dan Troy (D-Willowick). But he said on the House floor that while the bills didn't hit the school districts hard, they weren't providing huge help for taxpayers either.
"Under [HB 335], the median Ohio taxpayer will see $2 per month less of a future tax increase, compared to current law. Large corporate property owners will see tens, if not hundreds times that amount," Troy said. "If we think that this is somehow property tax relief for everyday Ohioans are heading off the constitutional amendment to abolish property taxes, we're kidding ourselves. I think this is like pouring a cup of water on a forest fire. We've got a heck of a lot more to do."
Rep. David Thomas (R-Jefferson), the sponsor of both bills, agreed that more work is ahead on property taxes, but not for the same reason.
"What is actual property taxation help? Ultimately, it's the taxpayer paying less and it's the government receiving less. That's what tax reform is," Thomas said. "If we continue to move money from different areas to use money to help increase, we're not actually decreasing the size and the scope of government. We're almost promoting its increase and its growth at some point. That's unsustainable."
Though many Democrats voted for the bills, Minority Leader Allison Russo (D-Upper Arlington) said it’s not targeted tax relief, and blamed past Republican lawmakers for not funding critical local services like schools.
"This General Assembly and many General Assemblies before us have failed to do our part as a state and fund critical programs, including our schools back in our districts," Russo said on the House floor. “Instead, what we have done is provide massive tax relief to rich people who do not need it and give bailouts to special interests.”
HB 186 passed 73-23, and HB 335 passed 71-24. The bills now move on to the Senate.
Meanwhile, an all-volunteer group is gathering signatures for a constitutional amendment to abolish all property taxes. The Committee to Abolish Ohio’s Property Taxes has until next July to turn in 413,446 valid signatures to make next fall’s ballot.
