(The Center Square) – Senate Republicans say billions in property tax savings are coming to Ohioans, but Democrats say it’s not nearly enough.
In a marathon session before it breaks for the year, the Senate passed changes to the state’s property tax laws that Republicans say stop “runaway tax increases” and result in $2 billion in taxpayer savings over the next three years.
“We stand for the taxpayers and not for runaway revenue that is undermining homeowners and the American Dream,” Senate President Rob McColley, R-Napoleon, said in a statement. “While home prices have skyrocketed and outpaced the rate of inflation, we’ve heard the complaints from homeowners and are not only granting tax relief in the near term, but we are making sure that these unexpected and unwanted spikes in property taxes won’t happen again.”
McColley said almost 70% of all local and state government property tax revenue collected goes to schools.
Later Wednesday night, the House concurred with the Senate’s changes and sent the legislative package to Gov. Mike DeWine.
The bills include:
• Creating a residential tax credit increase over the next four years.
• Capping the basic automatic growth of inside millage to no more than the cumulative rate of inflation over the previous three years.
• Capping the growth in property taxes due to reappraisal at no more than the cumulative rate of inflation over the previous three years.
• Gives county budget commissions the power to reduce unnecessary or excessive collections.
• Makes existing emergency and substitute levies subject to the tax reduction factors.
The new changes go along with a veto override earlier this year that stops all future emergency and substitute levies.
Democrats, however, said Republicans missed a chance to do more for property owners and Ohioans by failing to include an amendment that would have expanded the homestead exemption for the elderly and disabled.
“Democrats are fighting to support homeowners, provide property tax relief to those who need it the most, and protect essential services,” Democratic Leader Nickie Antonio, D-Lakewood, said in a statement. “I hope that my Republican colleagues join us in continuing to find ways to provide real tax relief to Ohioans.”
Republicans also turned away amendments that would have protected libraries, addiction services and municipalities from levy reductions and another that would have repealed tax exemptions for data centers.
“The Republican-led Legislature’s failure to fully and fairly fund our schools continues to shift the burden onto the backs of everyday Ohioans and places misguided blame on our schools and local services that actually make our communities strong,” Antonio said.
