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An Ohio bill would outlaw property tax replacement levies

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COLUMBUS, Ohio (Statehouse News Bureau) — The Ohio House advanced its first property tax proposal this session Wednesday, and some lawmakers say it was the first of many bills coming on an issue constituents are calling regularly about.

An electronic voting booth
[Daniel Konik | Statehouse News Bureau]
Cities and towns can levy taxes on properties to fund different programs in more than one way, including through renewal levies and replacement levies. Though they sound similar, replacement levies factor in properties’ rising valuations, unlike renewal levies, which go off of properties’ values when the initial levy went through, according to the Ohio Legislative Service Commission (LSC).

With replacement levies, even voting to extend a levy at its original rate might result in slightly higher taxes. Additionally, the state subsidizes renewal—but not replacement—levies through 10% rollback reimbursements, said Rep. Adam Mathews (R-Lebanon).

That all creates unnecessary confusion that could mislead voters, Mathews (R-Lebanon) said he believes, which is why he introduced a bill to get rid of replacement levies.

“House Bill 28 puts the power back where it needs to be, with the voters, so that they can understand what’s in front of them when they go to the ballot box,” Mathews said in an interview Thursday. “Because property taxes are local taxes that are voted for in local elections and putting the power to have that local information is the intent.”

HB 28 opponents, however, argued it does local governments more harm than good. Democratic Rep. Daniel Troy (D-Willowick) said state actions are the reason cities and towns have become more and more reliant on property taxes.

“I’m a little concerned about today taking away a tool from our local government entities that they sometimes utilize to address that situation,” Troy testified on the House floor Wednesday.

An analysis by LSC showed in three recent elections, renewal levies had a higher passage rate statewide.

HB 28 passed with primarily Republican backing, by a 62-30 vote. But that vote included two Democrats, Reps. Bride Rose Sweeney (D-Westlake) and Chris Glassburn (D-North Olmsted), while Rep. Gayle Manning (R-North Ridgeville) voted against it. It now heads to the Senate.