Ohio Property Tax Relief: What Columbus Homeowners Need to Know

Property taxes are a significant financial consideration for homeowners in Columbus and across Ohio. As property values have risen, so have tax bills, leading to widespread concern and a push for reform. The state legislature and the Governor's office have been actively discussing and proposing various solutions. For Columbus homeowners, understanding these proposals is key to knowing how their finances could be affected.

Here's a breakdown of the current discussions surrounding property tax relief in Ohio and its implications for residents.

The Homestead Exemption: Potential Expansion and Changes

The Homestead Exemption is one of the most well-known property tax relief programs in Ohio. It currently provides a reduction on the property's taxable value for qualifying senior citizens, people with permanent disabilities, and surviving spouses of public safety officers.

• What's Being Proposed: There have been multiple proposals to expand this program. One common theme is increasing the income eligibility threshold and the amount of property value that can be exempted. For example, some proposals have suggested raising the income limit from its current level and increasing the exempted value from $25,000 to a higher amount, such as $40,000 or even $50,000.

  
  

• How it Could Affect You: If you are a senior citizen, a person with a permanent disability, or a surviving spouse, an expanded Homestead Exemption could significantly reduce your property tax bill. Higher income thresholds would make the program accessible to a wider range of homeowners who may be on a fixed income. The increased exemption amount would also provide a greater reduction in the overall tax burden for those who already qualify.

  
  

• The "Cliff Effect" and New Models: Some proposed changes, like Senate Bill 215, are designed to address the "cliff effect," where a homeowner loses the entire exemption if their income goes a single dollar over the limit. This bill proposes a percentage-based reduction tied to income, offering a more gradual phase-out of the benefit. This could provide some relief to homeowners who are currently just above the eligibility threshold.

The Debate Over School Levies

School levies are a major component of property tax bills, as they fund a significant portion of local school districts' budgets. Recent legislative discussions have focused on revising the structure and approval process of these levies.

• What's Being Proposed: One proposal that was partially vetoed by the Governor but remains a point of discussion would have eliminated certain types of school levies, such as replacement and emergency levies. Another key provision, which was approved, caps the amount of unspent cash a school district can carry over from year to year (at 40% of their operating budget). Any excess would theoretically be refunded to taxpayers through a tax reduction.

  
  

• How it Could Affect You: This is a complex area with potential for mixed results.

  • The Good News: The refund provision could, in theory, lead to a one-time or recurring reduction in your property tax bill if your local school district has a large cash surplus. This is a direct form of relief aimed at returning taxpayer money.

    
    

  • The Bad News: Critics of these measures argue they could force school districts to return to the ballot more frequently to ask for new levies. Unlike many older levies that come with tax credits, new levies do not. Over time, this could actually erode the tax breaks that homeowners currently receive, potentially leading to higher taxes in the long run. The changes could also make it more challenging for school districts to maintain stable funding, potentially impacting the quality of local education.

Other Ideas on the Table

In addition to the two main proposals, several other ideas are being proposed by officials and working groups to address rising property taxes. These include:

• Circuit Breaker System: A "circuit breaker" would cap property taxes at a certain percentage of a homeowner's income. This would provide targeted relief to those with lower incomes who are disproportionately affected by rising taxes, ensuring they are not "priced out" of their homes.

  
  

• Tax Deferment Programs: These programs would allow eligible homeowners, often seniors, to delay paying a portion of their property taxes. The deferred amount would be a lien on the property and would be paid back with interest when the home is sold or the owner passes away.

  
  

• Property Tax Freeze: Some proposals have even suggested freezing property taxes at a specific level, such as the 2022 valuation, to provide immediate, temporary relief while a more permanent solution is found.

What Columbus Homeowners Should Do

The landscape of property tax relief in Ohio remains in flux, with proposals being introduced, debated, and revised. For Columbus homeowners, the key is to stay informed.

• Stay Up-to-Date: Follow local news and updates from your county auditor and state representatives.

  
  

• Know Your Eligibility: Review the current Homestead Exemption and Owner Occupancy Credit programs to ensure you are taking advantage of any relief you are currently eligible for.

  
  

• Participate in the Conversation: Contact your local officials and let them know your concerns about property taxes. Your feedback can help shape the final legislation.

Ultimately, the goal of these reforms is to provide meaningful relief to homeowners burdened by rising property values. While the details are still being worked out, understanding the proposals and their potential impact is the first step toward advocating for a solution that works for you and your community.