Buckeye Reporter

The Buckeye Institute recently presented its testimony to the Ohio House Ways and Means Committee regarding Ohio House Bill 335. The institute views this bill as a critical move towards property tax reform in the state.

Greg R. Lawson, a research fellow at The Buckeye Institute, highlighted that Ohio has one of the highest local tax burdens in the nation. He attributed this to the state's complex municipal income tax structure, which he says leads to unpredictable property tax increases for homeowners and small businesses.

Lawson described House Bill 335 as "the most significant property tax reform legislation since House Bill 920 passed in 1976." He noted that it would benefit homeowners by eliminating policies that allow school districts to increase property taxes without voter approval.

In his testimony, Lawson reiterated points from an opinion piece he wrote for The Columbus Dispatch. He encouraged lawmakers to consider additional reforms to reduce property tax burdens on Ohioans by streamlining local government structures.

He praised Representative Thomas for introducing the bill, stating it was "a decisive step toward a more efficient local government structure and property tax system," which he said is needed to protect taxpayers from an outdated system.

House Bill 335 seeks to address issues stemming from previous legislation, such as House Bill 920's cap on property tax increases. It aims to close loopholes that allow school districts to raise taxes without voter consent by requiring certain levies to count towards existing caps and prohibiting inside millage reallocations without taxpayer approval.

Lawson also mentioned the importance of prohibiting political subdivisions from levying inside millage without prior voter approval. This change is expected to save taxpayers billions but will likely face opposition from local governments needing to adjust their budgets accordingly.

The Buckeye Institute continues advocating for reducing property tax burdens by encouraging consolidation and resource-sharing among local governments. They argue this could lead to more efficient public services and reduced excessive levies.

Lawson concluded his testimony by expressing support for Representative Thomas's efforts with House Bill 335 and offering assistance with any questions from the committee members.