On Tuesday, Co-Chairs Pat Tiberi and Bill Seitz submitted a report to Governor Mike DeWine containing the final recommendations of the Ohio Property Tax Working Group.
The group was tasked with reviewing the state’s property tax system and proposing ways to improve fairness, transparency, and efficiency.
The membership of the Property Tax Working Group includes:
- Co-Chair Pat Tiberi, President and CEO of the Ohio Business Roundtable
- Co-Chair Bill Seitz, former State Representative
- Krista Bohn, Allen County Treasurer
- Chris Galloway, Lake County Auditor
- Matt Nolan, Warren County Auditor
- Steve Patterson, Mayor of Athens
- Dr. John Marschhausen, Superintendent of Dublin City Schools
- Stephanie Starcher, Superintendent of Fort Frye Local Schools
- Denise Driehaus, Hamilton County Commissioner
- Gary Scherer, Pickaway County Commissioner
- Jeff Chattin, Pike County Commissioner
The Property Tax Working Group outlined 20 recommendations addressing levy oversight, transparency, taxpayer equity, and relief programs. Highlights include:
- County Budget Commissions – Refine processes to protect voter intent and financial stability, allowing unnecessary or excessive levies to be reduced after five years (or two years for renewals) with public hearings.
- Carryover Balances – Limit all taxing districts’ carryover balances to 100%, with written justification required for any excess.
- Levy Types – Eliminate substitute levies, renaming current substitute and emergency levies as “fixed-sum levies” to simplify voter understanding and maintain the 12.5% rollback where applicable.
- Levy Oversight – Require County Commissioners to review and approve or reject levies proposed by non-elected entities.
- LLC Loophole – Require LLCs to buy and sell residential and agricultural property under the same rules as individuals to ensure fair taxation.
- Support House Bill 186 – Provide tax credits for school districts and joint vocational school districts on the 20-mill floor, with recommendations to apply principles to inside millage.
- Support House Bill 156 – Amend to calculate tax credits as differences from the previous year, targeting senior and disabled homeowners with limited incomes.
- Levy Ballot Language – Implement clearer, transparent language so voters understand levy impacts on property taxes.
- Emergency Levies – Restrict emergency levies to districts under fiscal caution, watch, or emergency, limit to five-year duration, and count toward the 20-mill floor.
- Levy Interest – Authorize levy boards to retain earned interest while allowing County Commissioners to recover indirect administrative costs.
- Penalty and Interest Processes – Improve processes for qualifying homeowners who are delinquent on property taxes.
- Tax Deferral Program – Create a deferral program for qualifying seniors aged 65+ or disabled, owning property for 10+ years, and meeting homestead income thresholds.
- Property Tax Exemptions – Regularly review and evaluate exemptions to ensure effectiveness and alignment with current needs.
- Reappraisal Schedule – Balance sexennial reappraisal and triennial update schedules across counties to ensure equitable tax assessments.
- Community Reinvestment Areas (CRAs) – Support House Bill 154, allowing school districts to disapprove residential CRA projects affecting them.
- Residential Stability Zones – Support Senate Bill 42 with limits to ensure targeted assistance for seniors, school board veto power, and tract limits.
- Efficiency Study – Encourage the Governor to form a working group to analyze government levels and promote resource sharing.
- Housing Supply – Highlight the need to address housing shortages that drive property tax valuations higher and impact affordability.
- Property Tax Credit Abuse – Direct the Ohio Department of Taxation to review and prevent multiple claims on owner-occupied credits.
- Homestead and Circuit Breaker Programs – Consider expanding homestead exemptions and/or implementing a property tax circuit breaker to provide relief for vulnerable Ohioans.
See the complete report HERE.
Governor DeWine will now review the report and its recommendations, which are expected to guide potential reforms to Ohio’s property tax system and ensure greater fairness and transparency for taxpayers statewide.
