(The Center Square) – Property owners throughout Ohio likely will receive some type of property tax relief when lawmakers pass the state’s new budget, but how much and what type continues to be a point of contention.
At a news conference Tuesday, Democrats called House Bill 335 catastrophic for local governments.
“They are saying proposing we will propose property tax relief by taking it out of the budget of our local governments and putting them in a position they will be restricted or stifled in providing the critical services local governments have to provide,” Rep. Daniel Troy, D-Willock said Tuesday at a press conference.
Willowick also said the bill, which is scheduled for its first true hearing in the House Ways and Means Committee on Wednesday, would force local governments to go to voters for sales or income tax increases due to the loss of property taxes.
The bill’s sponsor, Rep. David Thomas, R-Madison Township, submitted sponsor testimony to the committee that calls HB335 “the boldest, most transformational property tax reform package in half a century.”
He said the bill would provide $3.5 billion in direct property tax relief in January by eliminating the constitutionally guaranteed 10 mills of property taxes to taxing districts that do not need a vote.
He also said the bill, among other things, rebalances the burden on property owners by having governments use other revenue tools and allows the county budget commission to limit tax rates and oversee budgets.
“These goals provide property tax relief and reform now, in January, and into the future,” Thomas submitted. “As I have traveled the state, I have asked local governments to use their other forms of revenue to provide local services including sales and income tax in addition to cutting spending, instead of relying heavily on property taxes. I have been met with refusal, skepticism, and calls for higher state taxes to subsidize growing local property taxes.”
Wednesday’s first hearing already has opposition lined up from the Ohio Association of Police Chiefs, Ohio Mayors Alliance, Ohio State Association of County Veterans Service Officers, Ohio Superintendents Association, Ohio School Board Association, Ohio Municipal League and several cities, towns and counties.
