House Bill 28 if approved by the Senate and governor will cancel the ability of local tax jurisdictions to place replacement levies on the ballot, measures the bill sponsors say often produce tax increases.
The House voted 60-to-32 approving the measure. Last General Assembly the same proposal died on the vine after House Ways and Means Committee approval last May.
Taxing jurisdictions have a number of ways to request funds from voters but bill co-sponsors representatives Thomas Hall, R-Madison Twp. and Adam Mathews R-Lebanon say “many voters treat renewal and replacement as synonyms when they function entirely differently.”
A renewal levy collects the same amount as always where a replacement factors in the increased property values, thereby frequently increasing a homeowner’s overall tax liability.
There were four hearings on the bill where pro and con views were voiced. Bath Twp. Fire Chief Joseph Kitchen, president of the Ohio Fire Chiefs’ Association, voiced grave concerns.
“Eliminating replacement levies would remove a vital option for communities like mine and leave departments with few alternatives — either pursuing higher millage rates, which are increasingly difficult to pass, or facing dangerous funding shortfalls,“ he testified.
The committee passed the measure by a vote 7-to-4. When asking support from the entire House, Matthews said the difference in levy passage success rates is negligible.
“The difference between a renewal and a replacement at the ballot box is minimal,” Matthews said. “In 2023 replacement levies passed at just over 89% and renewals with an increase, being honest with our voters, passed at over 86% so less than a 3% difference.”
Since the end of January, 19 bills regarding property tax reform have been introduced — 13 in the House and 6 Senate measures — compared to 23 from February 2023 to the end of last year.
“Today colleagues is step one of property tax reform,” Hall said during the House session. “I’m very encouraged in this General Assembly to see so many property tax proposals being introduced.”
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