Last week Ohio’s Office of Budget Management released a high-level summary of the impacts Ohioans could expect if voters abolished property taxes.
Property taxes have rapidly escalated in many parts of the state the last several years. And Ohio does need more tools to provide targeted relief for vulnerable homeowners.
But the wholesale abolition of property taxes will irreparably harm Ohio’s communities and put unsustainable pressure on other tax sources, like sales tax.
OBM projects the end of property tax collection could result in local sales tax rates doubling to 15-18%, and local income tax collections increasing more than 5 times current rates to 11-15% tax on income. These rates are the opposite of a “business-friendly” tax environment, which Ohio has proven to be year over year.
Essential services like 911, senior services, jails, road improvements, children services, and more would be generationally harmed by the elimination of property taxes, and, again, work against Ohio’s goals of attracting top-talent and businesses.
GOPC is monitoring recently passed policies that can provide eligible homeowners relief from burdensome costs. There are more tools under consideration, which GOPC is closely following. But a constitutional amendment to eliminate property taxes in Ohio is not a viable solution.