MANSFIELD — It’s clear many Ohio residents are in a foul mood about rising property taxes across the state.
In fact, a group called the Committee to Eliminate Property Taxes is gaining momentum in its push for a 2026 ballot initiative that would do just that — eliminate a funding stream that drives much of local government machinery, including public education.
As the idea percolates around Ohio, the state legislature in the two-year budget approved this summer has handed counties a tool that could reduce local property taxes — but without any state assistance in replacing those funds.
In other words, if county commissioners expand, even perhaps double, the current state-funded Homestead exemptions and 2.5% owner-occupancy credits, it would be done involving only local dollars.
That decision must be made by the end of October with any tax reductions taking effect starting Jan. 1.
The three-member Richland County Board of Commissioners voted Tuesday to invite every entity in the county that receives property tax funds to attend a meeting Oct. 9 at the county administration building to discuss the proposal.
The public meeting will be at 10 a.m.
(Below is the body of a letter being sent to every entity in Richland County that receives property taxes.)
‘I feel like I’m being stuck with it’
All three commissioners expressed frustration state lawmakers had basically handed them the current hottest of political potatoes — one that could provide local property tax relief, while also potentially badly damaging local entities, including schools.
For example, Commissioner Tony Vero said, action by commissioners to double the current allowances and exemptions could cost the Mansfield City School District as much as $1 million annually and perhaps $650,000 each year for districts like the Madison Local School District and Lexington Local Schools.
In many instances, those districts are already scrambling to keep their own financial heads above water.
But it would also impact a myriad of local entities, including Dayspring, Richland County Mental Health & Recovery Services, Richland Newhope, Richland Public Health, Richland County Children Services, the Richland County Park District and the Mansfield-Richland County Public Library.
“Absolutely I feel like I’m getting stuck with it. I’m very frustrated with it,” Commissioner Darrel Banks said.
Vero said if commissioners chose to offer maximum relief allowed by the legislation, it would be about a $6.6 million annual loss in revenue to all taxing jurisdictions across the county.
“The jurisdictions that would suffer the most would be our school districts, certainly by way of the Homestead (exemption). They make up over 50 percent of those tax credits,” he said.
“I think it’s a little frustrating that this has been forced down to the counties,” Vero said.
Ohio property taxes have surged primarily due to a housing market boom during the last several years, which led to massive increases in assessed property values during the mandatory six-year re-appraisal cycle.
That boom, and the prices home buyers chose to pay as the result of bidding wars, has contributed to the property tax crisis at least in part, according to Richland County Auditor Pat Dropsey, who also cited changes and evolutions in federal and state rules and laws.
“People were paying stupid prices. When the county auditor has a property valued at a specific amount, and people are paying 200 to 300 percent more, that’s what I call stupid sales,” he said.
(Richland County Auditor Pat Dropsey talks about property taxes and other taxing issues during an August visit with the News Man Weekly podcast. The discussion with Dropsey begins around the 23:54 mark of the show.)
These reappraisals were ordered by the Ohio Tax Commissioner, as required in Section 5715.33 of the Ohio Revised Code.
Ohio law requires the state tax commissioner to order a reappraisal of all property in each county once every six years. It also allows the commissioner to order a reassessment every three years between reappraisals.
The reappraisal values were calculated by a certified third party vendor, according to Dropsey.
The vendor took into account home sale data, permitting data and data from the county auditor’s office, as well as physically inspecting every parcel in Richland County over the last two and a half years.
“It’s not just Richland County (where property values and taxes have soared). It’s all around the state,” he said.
‘You’re giving us a tool, but not the toolbox’
Vero said he understands both sides of the issue. Residents are being pinched by inflation and rising property taxes. But local governments, including schools and countywide agencies, depend on those taxes to perform statutory functions.
“I think my message (to state Rep. Marilyn John) was, ‘You’re giving us a tool, but you’re not giving us the toolbox,'” Vero said.
“If you believe the mantra that decisions are best made locally, then my message is you need to give us a lot more authority or opportunity to make changes other than these two finite issues … on top of the fact that currently the state backfills (such reductions at current levels).
“I don’t want to speak for Marilyn, but it’s obvious the state isn’t going to backfill it (at increased levels),” Vero said.
Commissioner Cliff Mears agreed with his colleagues.
“I think it’s universally recognized that property tax is a hot potato right now. But it feels like the legislature said, ‘Well, if you all want to give them relief, you’re on your own,'” Mears said.
Vero said commissioners need to hear from school officials and others that would be impacted by any property tax relief the board may select.
“This is the business we’ve chosen, right? So we have to make some tough decisions, and that’s why we were elected. We certainly want to hear from our taxing jurisdictions before we make any decisions that would certainly impact those government jurisdictions,” Vero said.
“I’ve had conversations with school superintendents about this who are looking into it on their end. But our message is, and my message has been, is we need to discuss this because residents have certainly felt the pain of property tax increases and so we certainly want to see if we can afford them relief,” he said.
Property tax elimination train can be heard
The sound of the property tax elimination train potentially coming down the tracks is certainly one being heard in Columbus and all the way down to the county level.
The Ohio Council of County Officials on Monday announced its support of a combined proposal from the County Auditors’ Association of Ohio, the County Commissioners Association of Ohio and the County Treasurers Association of Ohio to address the growing property tax crisis.
“In a coordinated effort to bring relief to millions of Ohioans struggling with rising property taxes, these three associations outlined a comprehensive set of policy recommendations designed to bring fairness, sustainability, and targeted relief to taxpayers across the state,” the organization said in an emailed press release.
“OCCO, which represents elected officials from all 88 counties, stands united behind this call for immediate legislative action,” it said.
But all of their suggestions, regardless of how sound, are at a statewide level. The decision facing commissioners now is in local hands, even if the tax system was not one they arranged.
“I do want to at least say this is how the system — right, wrong or indifferent — was set up. It’s not the primary fault of the schools.
“County (general funds) get sales tax for the most part, municipalities get income tax for the most part, schools get property tax for the most part. That’s the system … there’s language that reflects that in our state constitution,” Vero said.
“It’s a delicate balance, but that’s why we wanted to have a discussion with impacted government agencies before we made any decisions,” he said.
