Ohio House Passes Bill Aimed at Curbing Property Tax Hikes: A Deep Dive into HB 28
Table of Contents
March 20,2025
Columbus,Ohio – In a move designed to address rising homeowner concerns,the Ohio house of Representatives passed House Bill 28 (HB 28) on Wednesday,a bill that seeks to eliminate a specific type of property tax levy. This action comes amid ongoing debates about property tax relief across the state, fueled by critically important increases in home values during 2023 and 2024.The bill aims to prevent local governments from leveraging “replacement levies” to increase tax revenue beyond what voters might expect.
Understanding House Bill 28: Targeting Replacement levies
HB 28, formally introduced as House Bill 28, zeroes in on prohibiting local governments and taxing jurisdictions from placing “replacement levies” on ballots. These levies, unlike “renewal levies,” empower local governments to reassess property values and collect more tax revenue, even if the stated tax rate remains the same. This can translate to unexpected tax increases for homeowners as property values rise,a particularly sensitive issue in a market where home values have seen substantial appreciation.
To illustrate, consider a homeowner in a rapidly developing suburb of Columbus. their property value might have increased by 20% in the last two years. If their local school district opts for a replacement levy,the homeowner’s tax bill could increase considerably,even if the millage rate stays the same. This is as the tax is now calculated on the higher, reassessed property value.
Town hall shows frustrations over property taxes
Ohio State Rep. David Thomas, R-Jefferson, addresses a property tax town hall organized by state Rep. Gary click, R-Vickery, in Fremont, Ohio.
- Ohio House Bill 28 seeks to ban replacement property tax levies, which increase revenue for local governments as property values rise.
- Supporters argue that replacement levies are misleading to voters,while opponents say they are essential for funding local services.
Representative Adam Mathews, R-Lebanon, emphasized the importance of the bill, stating, “We have seen the impact of increased property taxes, and our constituents have been clear in their desire to see meaningful, systemic property tax (reform) enacted. This is a step towards that.”
This sentiment echoes the concerns of many Ohio homeowners who feel that their property taxes are outpacing their ability to pay. The bill is seen as a potential safeguard against unchecked tax increases, offering a degree of predictability in their annual expenses.
Replacement vs. Renewal Levies: Decoding Ohio’s Property Tax System
To fully grasp the implications of HB 28, it’s crucial to understand the diffrent types of levies in Ohio. According to the Legislative Service Commission, Ohio utilizes four types of levies, with replacement and renewal levies frequently enough causing confusion. Understanding these differences is paramount for Ohio voters when they head to the polls.
| Levy Type | Description | Impact on Taxpayers |
|---|---|---|
| Renewal Levy | Extends an existing levy at the current effective millage rate, incorporating discounts from House Bill 920. | Maintains the existing tax burden, preventing automatic increases due to rising property values. Think of it as keeping your tax rate steady. |
| Replacement Levy | Replaces an existing levy with updated property values, perhaps at the same tax rate. | Can lead to higher tax bills for homeowners, even if the tax rate appears unchanged.This is the levy HB 28 aims to eliminate. |
Renewal levies maintain the status quo, ensuring that homeowners don’t experience automatic tax increases solely due to rising property values, thanks to credits established by House Bill 920, passed in 1976. This law provides a crucial buffer against inflation in the housing market. Without it, many Ohioans would face significantly higher tax bills each year, irrespective of their income.
However, replacement levies offer local governments a mechanism to capture increased revenue from rising property values. While this can be beneficial for funding essential services, it also places a greater burden on homeowners, particularly those on fixed incomes or those whose incomes haven’t kept pace with rising property values.
Ohio’s Property Tax Battle: Expert Unpacks House Bill 28 and what It Means for Homeowners
Did you know that a seemingly unchanged property tax rate can still lead to higher bills? We dive deep into Ohio’s property tax system with tax policy expert, Dr. Eleanor Vance, to understand the implications of House Bill 28 and how it might impact your wallet.
Senior Editor: Dr.Vance, thank you for joining us. Ohio homeowners are facing increasing property tax burdens.Can you give us a breakdown of what’s happening and why house Bill 28 is so crucial?
Dr. Vance: “Thank you for having me. The core issue revolves around the types of property tax levies used in Ohio. House Bill 28 specifically targets ‘replacement levies.’ These levies allow local governments to reassess property values and generate more tax revenue, even if the stated tax rate remains the same. This can lead to significant and unexpected tax increases for homeowners.Rising home values in recent years have exacerbated this issue,leading to considerable homeowner concern.”
This concern is particularly acute in areas experiencing rapid gentrification or new advancement. Long-time residents may find themselves priced out of their homes due to escalating property taxes, even if their income remains stagnant.
Senior Editor: Could you elaborate on the differences between renewal and replacement levies, and how they impact taxpayers differently?
Dr. Vance: “Absolutely. Understanding the levy types is key.”
The renewal levy extends an existing levy at the current effective millage rate. Thanks to House Bill 920 from 1976,it incorporates discounts and,in essence,maintains the existing tax burden,preventing automatic increases due to rising property values.
A replacement levy, on the other hand, replaces an existing levy with updated property values, perhaps at the same tax rate. This is where the potential for higher tax bills comes in, even if the tax rate appears unchanged. The reassessment of property values allows for additional tax revenue collection.
To put it simply,a renewal levy is like renewing your driver’s license – you’re keeping the same terms. A replacement levy is like trading in your old car for a new one – even if the interest rate is the same, the overall cost can be higher because the car is worth more.
Senior Editor: what are the main arguments for and against house Bill 28?
Dr. Vance: “The debate is really about local government funding versus homeowner affordability.”
Supporters of the bill, like Representative Adam Mathews, argue that replacement levies are misleading to voters and contribute to an unsustainable tax burden. The intention is to provide meaningful property tax reform.
Opponents, often local government officials, contend that these levies are essential for funding crucial local services such as schools, infrastructure, and public safety. Their argument frequently highlights the potential impact on these services if revenue is restricted.
The crux of the issue is finding a balance between responsible taxation and ensuring that local communities have the resources they need to thrive. Opponents of HB 28 argue that eliminating replacement levies could force local governments to make challenging choices, such as cutting essential services or raising taxes through other means.
Senior Editor: How does this bill fit with the broader context of property tax reform efforts in Ohio?
Dr. Vance: “Property tax reform has been a significant focus for Ohio lawmakers. The Ohio General Assembly has cited property tax reform as a top priority. House Bill 28 is just one piece of a larger conversation. other bills, like Senate Bill 81, which proposes a property tax freeze for seniors, also reflect this trend. There’s a bipartisan effort to address property tax law and reform. The goal is to find a balance between providing property tax relief and ensuring local governments have the resources they need.”
This multi-faceted approach suggests a growing recognition among Ohio lawmakers that the state’s property tax system needs modernization. The challenge lies in finding solutions that are both equitable and lasting.
Senior Editor: What should Ohio homeowners do to stay informed and potentially influence the outcome of these property tax debates?
Dr. Vance: “There are several critical steps homeowners can take:”
-
Understand your property tax bill: Take the time to review your bill and identify the types of levies that are affecting your tax burden.
- Follow local government meetings: Stay informed about proposed tax levies and any related legislation.
-
contact your representatives: Voice your concerns and opinions to your state representatives.
-
Educate yourself on levy types: Understand the difference between renewal and replacement levies so you can be an informed voter.
Engaging with local government is crucial. homeowners can attend town hall meetings, write letters to their representatives, and participate in online forums to voice their opinions and concerns.Collective action can be a powerful tool for influencing policy decisions.
Senior Editor: Dr. Vance, thank you for shedding light on this complex issue. Your insights will be invaluable for homeowners navigating Ohio’s property tax landscape.
Dr. Vance: “My pleasure. It’s crucial for homeowners to be engaged and informed to make decisions that impact their financial well-being.”
Is your property tax bill a mystery? Stay informed, understand the levies in your area, and make your voice heard. Property tax reform is an ongoing process, and your participation is crucial. Share your thoughts and experiences in the comments below!
Decoding Ohio’s Property Tax Crisis: Expert Unpacks HB 28 and What It Means for Your Wallet
Are you unknowingly paying more in property taxes, even when rates remain the same? We delve into the complexities of Ohio’s property tax system with Dr. Eleanor Vance, a leading tax policy expert, to uncover the implications of House Bill 28 and how it could change the future of Ohio real estate.
The Core Issue: Replacement Levies and Rising Home Values
Senior Editor: Dr. Vance, thank you for taking the time to join us. Ohio homeowners are understandably concerned about increasing property tax burdens. Can you give us a breakdown of the core issues at play, and why House Bill 28 has become so crucial?
Dr. Vance: Thank you for having me. The heart of the matter is the types of property tax levies used in Ohio, specifically House Bill 28’s focus on ‘replacement levies.’ These levies allow local governments to re-evaluate property values, potentially generating more tax revenue, even if the stated tax rate stays constant. This leads to notable and often unexpected tax increases for homeowners. Rising home values, especially those we saw in 2023 and 2024, have significantly exacerbated this issue, heightening homeowner concern.
Renewal vs. Replacement Levies: What’s the Difference?
Senior Editor: Could you break down the distinctions between renewal and replacement levies and how they impact taxpayers differently?
Dr. Vance: Absolutely. Understanding these levy types is key to navigating Ohio’s property tax landscape.
The renewal levy extends an existing levy at the current effective millage rate. It maintains the existing tax burden and prevents automatic increases due to rising property values, thanks to the safeguards established by House Bill 920 from 1976.This means it essentially keeps your tax rate steady.
A replacement levy, on the other hand, replaces an existing levy with updated property values, frequently enough at the same stated tax rate. This is where the potential for higher tax bills comes in, even if the tax rate appears unchanged. The updated property values are used to assess a higher tax bill.
Think of it this way: A renewal levy is akin to renewing your driver’s license – you’re keeping the existing terms. But a replacement levy is somewhat comparable to trading in your old car for a new one – even if the interest rate is the same, the overall cost can be higher because the car’s value has increased. In the view of many people on the ground, the difference can be very counterintuitive.
Arguments For and Against HB 28
Senior Editor: What are the major arguments both for and against House bill 28?
Dr. Vance: The debate comes down to balancing local government financing with homeowner affordability.
Supporters of the bill, like Representative Adam Mathews, argue that replacement levies mislead voters by generating more revenue than originally intended, contributing to unsustainable tax burdens. The goal is to provide meaningful property tax reform.
Opponents, frequently enough local government officials, contend that these levies are essential for funding crucial local services such as public schools, vital infrastructure improvements, and essential public safety expenditures. They frequently highlight the potential impact on these essential services if the source of revenue is constrained.
A key point of contention is finding equilibrium between responsible taxation practices and ensuring communities have the resources they need to thrive. This is a very delicate balance at the core of responsible taxation. For example, opponents of HB 28 strongly contend that the elimination of replacement levies could force local governments to make difficult choices, such as cutting essential services or raising taxes through other revenue sources and methods.
The Larger Picture: Property Tax Reform Efforts in Ohio
Senior Editor: How does this bill fit into the broader context of property tax reform efforts statewide?
Dr. Vance: Property tax reform has been a significant priority for Ohio lawmakers in recent years. House Bill 28 represents only one element of this larger conversation. Other related bills, such as Senate Bill 81, which proposes a property tax freeze for seniors, reflect this trend. The focus on property tax law and reform is truly bipartisan. The objective is to strike a suitable balance between offering property tax relief and ensuring that local governments possess the essential resources to continue fulfilling their commitments.
This comprehensive,multi-pronged approach suggests that Ohio lawmakers are increasingly aware that the state’s current property tax system needs updating. The challenge lies in developing a strategy that is both equitable and sustainable, and addresses the real needs of all stakeholders. We need to do careful work to ensure that everyone is treated fairly, even if that means slower progress overall.
Empowering Ohio Homeowners: What You Can Do
Senior Editor: What steps can Ohio homeowners take to stay well-informed and potentially influence the outcome of the property tax discussions?
Dr. Vance: There are several critical steps homeowners can and should take:
Understand Your Property Tax bill: Take time to carefully review your property tax bill and identify the specific types of levies that are affecting your overall tax burden.Learn everything about what it shows each year.
Attend Local Government Meetings: Keep close tabs on proposed tax levies and follow any relevant legislation. It will help you understand the needs.
Contact Your Elected Representatives: Voice your concerns and share your insights with your state representatives. Stay in touch with your local officials as well.
Educate Yourself on Levy Types: Become well-versed in the differences between the replacement and renewal levies because this details equips you to become a truly informed voter.
* Research the specific needs of local government, and share those in a constructive way to allow for a more informed and robust discussion.
Engaging local government is instrumental for achieving a desirable outcome. Homeowners should attend town hall meetings, write personal letters to their representatives, and actively participate in online forums to express their concerns and opinions. Collective action can definitely enable homeowners to influence policy decisions.
Senior Editor: Dr. Vance, thank you for providing such valuable insights into the realities of Ohio’s property tax system.
Dr. Vance: It’s my pleasure. It truly benefits homeowners to be actively involved and well-informed to make decisions that impact their financial well-being.
Are you prepared to take a closer look at your property tax bill? It’s essential to stay informed and involved in the process because this will make your voice heard.Ohio’s property tax has been going through a dynamic process, and your participation in this process is very crucial. Share your thoughts in the comments below!
