State lawmakers recently empowered county leaders to unilaterally roll back local property taxes. Butler County commissioners this month cut county property taxes by $20.1 million.
For Montgomery County officials, the hope is the state may pitch in to expand pre-existing statewide programs to provide immediate relief to taxpayers.
The County Auditors’ Association of Ohio has advocated for four actions related to property tax reform: expanding the homestead exemption, limiting school levy growth to inflation, expanding the owner-occupancy credits and creating targeted tax relief programs.
Professional organizations representing county commissioners, county treasurers and other county officials have backed the four-prong plan.
“We hear from our citizens. I think every single day, ‘I can’t pay my taxes, I can’t get groceries, I can’t do this,’” said Montgomery County Commission President Judy Dodge. “We’re hurting, and there’s no question about it.”
Dodge said she’d love to see a portion of the state’s more than $3 billion rainy day fund provide some form of relief to homeowners.
“I think it’s pouring right now,” she said.
Different approaches
Property taxes fund roughly $24 billion of services statewide. Roughly half of this funding goes to school districts.
Concerns about property taxes have always existed, but complaints have spiked since 2023 when local taxpayers saw huge property value increases. In Montgomery County, values countywide jumped an average 34%.
Ohio Gov. Mike DeWine’s property tax reform working group is expected to give its recommendation this week. DeWine gave the hand-picked group until the end of September to come up with a plan to tackle soaring property taxes that some politicians have said are making people unable to afford living in their own homes.
And other governments have taken their own approaches. Earlier this month, the Butler County commission announced plans to provide a two-pronged tax break to its residents next year, expected to have a $20.1 million impact.
This is not an approach that’s likely to take root in Montgomery County.
“I’m not a big fan of this piggyback option that the state has offered to counties,” Keith said. “The local jurisdictions have to pay for this credit. So what it really is is a service cut. The school districts will have to cut services, the townships will have to cut services, the county will have to cut services.”
One citizen-led initiative to abolish property taxes has also been gaining traction.
Keith said he appreciates the frustration of homeowners ― but he fears eliminating the revenue stream altogether would be devastating for schools, law enforcement agencies and other tax-funded services.
Montgomery County Treasurer John McManus said professional organizations and local officials alike can be voices guiding lawmakers moving ahead.
“As this ballot initiative continues to gain steam, and with the possibility that it may get on the ballot and even be successful, it is important, and it is the wise and smart thing to do to offer to policymakers options that they can look to, to choose from, to enact smart policy,” McManus said.
Denise Callahan contributed to this report.
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