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Ohio budget update: Lawmakers to eliminate the rollback on new property tax levies

By Scott Williams, OAR Director of Governmental Affairs

As you know, while OAR was successful in eliminating the expansion of the sales tax to real estate-related and business services in the state budget proposal, it has become apparent that Gov. John Kasich and legislative leaders remain committed to including reductions to both personal income and small business income taxes. To accomplish this shared goal, revenues will be needed to offset the cuts.

Late last night we learned that the Ohio House and Senate Conference Committee may issue a legislative tax proposal in the state’s budget bill that includes eliminating the rollback on residential property exclusively on NEW tax levies. All current levies and renewals will still receive the benefit of the residential property tax rollback.

Any school district or local government levy that is currently assessed to a property will still have the benefit of the property tax rollback. This proposal will only go into effect on a newly voted property tax levies.

When a local government or school district successfully passes a renewal levy after the enactment of this legislation, the property owner will still get the benefit of the residential property tax rollback

The Ohio House and Senate Conference Committee leaders maintain that property owners will have the final say on passage of NEW levies and will be made fully aware through ballot language that the NEW levy will not have the residential property tax rollback. Thus, property owners will not increase their property taxes without their vote.

The state is proposing to take the savings resulting from the elimination of the property tax rollback on all NEW levies as a revenue offset for a larger personal income tax cut and small business income tax cut.

The Conference Committee is expected to issue its report later this afternoon and it will include a variety of tax revenue changes in addition to the property taxes. These may include increased tobacco taxes, elimination of some obscure tax exemptions (including possibly means-testing the state’s homestead exemption) and/or credits. Details are not available at this time.

In the event the conference committee does introduce this proposal it will go before the full Ohio House and Senate in a matter of days. Ohio’s budget must be signed into law and balanced by June 30.

OAR is interested in knowing your thoughts on the proposal…so feel free to leave a comment.

Again, this proposal only applies to BRAND NEW levies going forward. All current and renewal levies will still have the benefit of the current property tax rollback.

Tags: politics

8 Comments

  1. Doug McCloud
    Posted June 21, 2013 at 10:23 am | Permalink

    As if getting NEW tax levies passed is not hard enough already! Let’s multiply the effects of a tax increase by taking away a little of the relief to fund some income tax reductions that no one is going to notice. Furthermore, the property owners not only will directly notice but a small group will be funding everybody’s income tax reduction. It almost sounds like income redistribution. There is no need to penalize property owners for being able to own real estate while giving their tax money to everyone. They aren’t thinking this one through.

    • John Myers
      Posted June 21, 2013 at 4:48 pm | Permalink

      I agree with Doug. Penalizing property owners is the wrong way to fund tax reductions. And to propose it at the very last minute so there will be very little organized response, politicians at their very worst.

    • Don
      Posted August 24, 2013 at 9:56 pm | Permalink

      guess all the levies will die with pride. oh yea

      • richard
        Posted September 6, 2013 at 11:11 am | Permalink

        I HOPE YOU ARE RIGHT.!!
        I CAN’T BELIEVE THE COLUMBUS REALTORS ARE SUPPORTING THE REDICULOUS SCHOOL LEVY FOR COLUMBUS…..

  2. Linda
    Posted July 23, 2013 at 5:14 pm | Permalink

    If this isn’t going to effect Landlords who at present can’t even get their current rent from these irresponsible welfare system tenants, if we have to raise their rent even more because of 12.5% rollbacks there will be more foreclosures as well.
    Ohio knows renting is the way to go now, not invest in buying with the job situation. Our young people are leaving the state and have been for more than 30 years. Good luck trying to get the few of us who own real estate to continue investing in Ohio.

  3. Don
    Posted August 24, 2013 at 9:47 pm | Permalink

    Just how does this effect seniors on SS?

  4. Don
    Posted August 24, 2013 at 9:54 pm | Permalink

    It is time to limit politicians to a 2 (two) year term then they cannot run for any public office for 6 (six) years. rotate the parties so there is a change every year.That would stop the long timers from getting a foot hold on everything that helps them but not the citizens.All government not just the state. HELLO

  5. richard
    Posted September 6, 2013 at 11:07 am | Permalink

    If the above comment happens and the roll bacck cancellation wakes up the voters of OHIO, then this is a great thing. IT IS TIME THAT POPERTY OWNERS FIGHT BACK. COLUMBUS IS ASKING FOR A REDICULOUS SCHOOL TAX THAT WOULD INCREASE MY TAXES ALMOST 25%.

    IT IS TIME THE PROPERTY OWNERS FIGHT BACK AND STOP THIS REDICULOUS WAY OF FUNDING FAILING SCHOOL SYSTEMS….

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