Ohioans Are Looking For Real Property Tax Relief – Will Reforms or Repeal Gain Traction?

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In a politicized era where everything seems to be red versus blue, right versus left, or “us” versus “them,” one of the few topics that seems to unify an otherwise polarized citizenry is the real property tax. It’s the tax that people love to hate. It’s the tax that many argue ignores ability to pay. It’s the tax that’s the most difficult to understand. And it’s the tax that is creating a wagonload of legislation at the Statehouse.

While real property tax reforms have been discussed since the inception of the tax in 1825, this year has seen a dramatic uptick in proposals.

Constitutional Amendment

A private group known as Citizens For Property Tax Reform has been crisscrossing the state collecting signatures for a constitutional amendment to ban real property tax in Ohio. Their proposal would repeal all real property taxes, residential and commercial, in Ohio on the first day of the calendar year following voter approval. The ballot language contains no provision for any type of replacement revenue, leaving those decisions up to the General Assembly and/or local government officials with authority to levy other types of taxes and alter public expenditures.

Budget Bill Reforms, Vetoes, and Veto Overrides

The Ohio General Assembly included a raft of property tax reforms in its version of the state’s biennial operating budget it sent to the Governor in June. Those proposals were line-item vetoed by Gov. DeWine. {Please see our earlier BUZZ  Property Tax Reform Vetoed for more details.}

Some majority caucus legislators in each chamber called for veto override votes. As of October 1, the Governor’s veto Item 66 which initially reversed the repeals of several types of real property tax levy options was overridden. The effect of that vetoed item becoming law over the objections of the Governor is that replacement levies for political subdivisions and emergency, substitute, and combined property/income tax levies for school districts will no longer be allowed prospectively. The other line-item vetoes concerning real property taxes – Items 55, 63, and 65 – remain under consideration for override. Those items cover County Budget Commission authority, cash carry-over balance limits for school districts seeking property tax levies, and counting property tax levies towards school districts’ 20-mill floor calculations, respectively.

Veto overrides may occur at any point of the current General Assembly, so they could be pursued through December 31, 2026. HB 96 Veto Message

Property Tax Working Group

Following the Governor’s veto action, Gov. DeWine publicly opined that real property tax reforms were needed, so he appointed a Property Tax Working Group to issue recommendations by September 30. The group, co-chaired by former state Rep. Bill Seitz and Ohio Business Roundtable CEO Pat Tiberi, was comprised of local government officials. The PTWG 2025 Report made 20 recommendations which can be viewed in the link.

While some legislators were publicly skeptical of the Governor’s working group, due to the fact that a legislative working group penned its own proposal which was released in late 2024 Joint Committee Report 2024, the findings of the Governor’s report have been discussed and considered in committee hearings as property tax-related legislation is being heard.

Pending Legislation

As of early October, the General Assembly has dozens of bills pending that deal with real property taxes:

• Real Property Classification – HB 17

• Expansion/Modification of the Homestead Exemption and/or owner-occupancy credits – HB 22, HB 40, HB 61, HB 103, HB 143, HB 261, HB 273, SB 42, SB 92, SB 206, SB 215

• Elimination of certain levy types – HB 28, HB 420

• Temporary Reductions – HB 89, HB 266

• Property Tax Assessment Methodology – HB 124

• Limits on Millage Reallocation and/or Counting Levies Towards the 20-mill Floor – HB 129, SB 66

• Authority to Place Levies on Ballot – HB 137, HB 466

• Authority to Freeze Certain Homes’ Taxes – HB 156, SB 81

• Limitations on Property Tax Exemptions and Screening for Reductions– HB 154, HB 179

• Allowance for Property Tax Deferrals – HB 212, HB 483, SB 275

• Prohibit Taxes from Taking Effect in Current Tax Year – HB 215

• Modifications to Property Tax Complaint Processes – HB 232

• Changes to the Authority of County Budget Commissions – HB 309, HB 335, HB 499

• Income Tax Credit for Certain Property Taxpayers – HB 365, SB 22

• Allow Electors to Reduce Inside Millage – HB 421

• Increase Approval Threshold for Levies – HB 422

• Authorize Counties to Exempt a Portion of Property’s Increased Value After Appraisal – HB 504

• Replace Certain School Property Taxes and with Sales Tax – SJR 4, SB 93

  
  

Additional proposals will continue to be introduced throughout this 136^th General Assembly.  Click here to see the bills and accompanying documents.

If you would like to discuss the contents of this post, please reach out to Brian Perera or Steve Hall.