The ohio legislature aimed to provide taxpayers with relief from high property taxes, but most of these efforts over the past two years have failed, and it seems unlikely they will succeed before the current legislative session ends.
State senator bill blessing, a republican from colerain township and chair of the senate ways and means committee, co-chairs a special committee focused on property tax relief. He has stated that relief is not likely this year.
“I feel comfortable saying no property tax relief will pass this (general assembly),” blessing said.
Last tuesday, the house made a final push with house bill 274, which would double the homestead exemption to $50,000 for homeowners who have lived in their homes for 20 years or more. The bill passed the house with a 78-11 vote. Rep. Adam mathews, r-lebanon, one of the bill’s co-sponsors, emphasized the need to protect long-term homeowners from being taxed out of their properties.
“this bill is a step toward providing relief to homeowners who need it most,” mathews said.
However, despite passing the house, the bill now needs to be approved by the senate. With little time left in the session, there is not enough time for it to go through the full senate process. Since it’s a tax bill, it would normally go to the senate ways and means committee, but blessing has said he does not plan to hold any more meetings, as the legislature is scheduled to recess soon.
At the end of the two-year general assembly, any bills that haven’t passed will be dropped, and a new session will begin.
‘kicking the can’
Senator bill blessing criticized house bill 274, stating that it is being presented as a significant solution, but in reality, it doesn’t provide much relief. He expressed doubts about the bill’s potential for passing, saying, “It’s not really providing all that much relief. I don’t think we’d pass that.”
Senate president matt huffman, who will become the next speaker of the house, could not be reached for comment about whether he wants to review house bill 274. However, two legislators shared that huffman has indicated he plans to focus on tax reform next year.
Rep. Dan troy, a democrat from willowick, expressed frustration, saying, “I understand that the senate president said he’d rather deal with this stuff next year, so we’re kicking the can down the road.”
Rep. Thomas hall, a republican from madison township, who has introduced more tax reform proposals than anyone else, added that the current property tax system is failing ohioans. He believes that any reform should be a complete overhaul rather than a piecemeal approach. Hall remains hopeful that meaningful progress can be made, especially with the upcoming budget.
Proposed bills
Over the past two years, the ohio legislature has introduced 23 standalone bills aimed at property tax reform. However, only two measures have been passed into law: indexing the homestead exemption to inflation and a small provision for surviving spouses of disabled veterans.
Among the most costly proposals were two versions of a “Circuit breaker” approach, recommended by policy matters ohio. These bills would offer tax breaks or credits to homeowners and renters based on the percentage of their income spent on property taxes. The house version of the bill is projected to cost $894.8 million in its first year, while the senate version would cost approximately $819.6 million.
Rep. Thomas hall, who has been a key advocate for property tax reform, expressed frustration with the lack of progress, citing the broader budget negotiations as a key factor. He pointed out that only 13 of ohio’s 88 counties experienced significant property value increases due to pandemic-related factors during the triennial update. Counties like butler, greene, and montgomery saw substantial increases — 37%, 30%, and 34%, respectively — while warren county’s reappraisal this year resulted in an average increase of 27%.
Hall explained that in 2023, during the budget discussions, property tax issues were not a priority for most legislators because only a few counties were facing substantial property tax hikes. However, after going through an election cycle, it became clear that property taxes had become a widespread concern across ohio.
Property values in ohio are reappraised every six years, and values are updated every third year using sales data. The shifts in property values are reflected in tax bills the following year.
Joint committee
The ohio legislature’s current budget didn’t allocate much space for significant property tax relief, but lawmakers did form a joint committee on property tax review and reform. This committee held several meetings in the first half of the year, exploring various tax relief ideas. The committee was tasked with developing a plan by year’s end, but as of now, no concrete plan has emerged.
Senator bill blessing and house ways and means committee chair bill roemer, both co-chairs of the committee, have indicated that the senate’s recommendations were sent to the house, but they have not received a clear response. Blessing mentioned that he expects a report to be issued before the year’s end, as required by the committee’s mandate.
In the meantime, roemer’s committee has been working on senate bill 186, which addresses property tax procedures. The bill has undergone several amendments, some of which reflect ideas from the joint committee. However, roemer noted that the bill was not yet ready for passage, emphasizing the need for further work to ensure the inclusion of all relevant perspectives.
Rep. Dan troy, a member of the joint committee, has expressed frustration over the lack of clear direction. He suggested adding an amendment to senate bill 186 that would extend the committee’s work for another year, allowing time to address unresolved issues. Troy’s approach advocates for more collaboration and compromise among committee members.
Blessing, however, opposed extending the committee’s work, stating that he feels enough has been discussed. He emphasized that local governments and constituents are eager for relief but do not want schools and local governments to bear the financial burden.
When asked about the failure to pass significant property tax reform, rep. Bill seitz, the majority floor leader, attributed the lack of progress to a failure to reach agreement between the house and the senate on the best approach. This ongoing disagreement highlights the challenges in addressing property tax reform in ohio.