Joint property tax study committee issues 21 recommendations in final report

Hannah News Service  

The Joint Committee on Property Tax Review and Reform on Jan. 2 released its final report after spending the past year studying Ohio’s property tax system over eight hearings and receiving testimony from 60 witnesses, issuing 21 recommendations while acknowledging some proposals may contradict others. 

Created by biennial budget bill 135-HB33 (Edwards), the joint committee was created to review the state’s complex property tax system. It was required to review the history and purpose of all aspects of the state’s property tax law, including the forms of levies, exemptions, and local subdivision budgeting, and publish a report of findings and recommendations no later than Dec. 31, 2024. 

The result is an 865-page document detailing the history and changes of the property tax system, while making 21 recommendations, though the joint committee cautioned that the recommendations should not be considered as a comprehensive package given the complexities of the property tax system and the contradictory nature of some recommendations to others. 

The committee was co-chaired by Sen. Lou Blessing (R-Cincinnati) and Rep. Bill Roemer, CPA (R-Richfield), and included Sens. Hearcel Craig (D-Columbus), Bill DeMora (D-Columbus), George Lang (R-West Chester), and Sandra O’Brien (R-Rome), and Reps. Tracy Richardson (R-Marysville), Bride Sweeney (D-Cleveland), Dan Troy (D-Willowick) and Tom Young (R-Centerville). 

Blessing said that while not an exhaustive list, the report represents a collection of reforms that were important to members of the committee. 

Among the recommendations are the following: 

- The Ohio General Assembly should consider expanding the traditional homestead exemption and an enhanced exemption for disabled veterans including a means-tested increase in the benefit. 

- The Ohio General Assembly should review the Senate Select Committee on Housing report and consider pursuing the recommendations in which there are direct connections between housing and property taxes. 

- The Ohio General Assembly should consider temporarily revising the Sexennial Reappraisal and Triennial Update schedule so that there are an equal number of counties or parcels being reassessed each year. 

- The Ohio General Assembly should consider allowing counties to temporarily, for three years, implement a three-year averaging for property valuations. Additionally, a mechanism should be explored to allow the usage of either the current formula or the 3-year averaging, whichever produces a better result for taxpayers. 

- The Ohio General Assembly should consider lowering the acceptable percentage of market value from 90 percent to 85 percent used when calculating market value changes during a mass appraisal sales ratio assessment. 

- The Ohio General Assembly should consider increasing the number of public meetings required to be held by a taxing authority prior to levying a tax to promote transparency to taxpayers. 

- The Ohio General Assembly should consider authorizing a property tax circuit breaker as proposed in 135-SB271 and other bills pending before the Ohio General Assembly. 

- The Ohio General Assembly should consider adopting a property tax deferral program for homeowners. 

- The Ohio General Assembly should consider expanding the limitations at the board of revision on property value and tax complaints initiated by parties other than the property owner and consider limiting the options for appeal by these non-owners. 

- The Ohio General Assembly should review the effectiveness of property tax exemption programs and evaluate the efficacy of their use and potential misuse. 

- The Ohio General Assembly should consider clarifying or expanding, if needed, the powers of each County Budget Commission to oversee the application and collection of voted and unvoted millage for all jurisdictions inside the county. 

- The Ohio General Assembly should find ways to simplify the process of levying and collecting property taxes and investigate ways to make it easier for all Ohioans to understand. 

- The Ohio General Assembly should consider removing the authority of the Department of Taxation to order adjustments to county auditors’ proposed property values. 

- The Ohio General Assembly should consider requiring that emergency and substitute tax levies be included in the calculation of a school district’s 20-mill floor and consider requiring a public hearing before changing unvoted property tax millage in order to increase revenue as proposed in 135-SB308 (O’Brien). 

- The Ohio General Assembly should consider reducing the maximum term and renewal options for emergency, substitute, and continuous tax levies. 

- The Ohio General Assembly should consider eliminating replacement tax levies. 

- The Ohio General Assembly should consider clarifying the terminology and narrowing the uses of emergency and substitute tax levies to prevent the use of funds for non-emergency purposes. 

- The Ohio General Assembly should consider reviewing current tax increment financing (TIF) law. 

- The Ohio General Assembly should consider reviewing the distribution formula for guaranteed inside millage to promote fairness based on taxing authorities’ current day services and funding needs. 

- The Ohio General Assembly should consider reforms to the Ohio Constitution that promote transparency and predictability for the taxpayer and provide more flexibility to the Ohio General Assembly.