CINCINNATI — With home values soaring in Ohio, a working group convened by Gov. Mike DeWine has released a slate of recommendations to reform property taxes in the state.
The bipartisan group included county auditors, school district superintendents, county commissioners, a city mayor and a county treasurer "to ensure reforms were shaped with broad consensus."
"There are a lot of seniors, a lot of low-income seniors, in particular, people with disabilities. And so, from my vantage point, that's the target," said Hamilton County Commissioner Denise Driehaus, one of the group's members. "I mean, everybody is challenged by increased property (taxes)."
WATCH: Tri-state officials weigh in on the recommendations outlined in the property tax reform report
Of the 20 recommendations outlined in the report, released Sept. 30, 13 build on previous recommendations made by the state legislature:
1. Refine the process and definition of county budget commissions
The group recommended allowing levies deemed “unnecessary” or “excessive” as defined by certain parameters to be reduced at a minimum of 5 years after voters approved the initial levy and two years after the renewal of a levy.
2. Limit carry-over balances for all taxing districts to 100%
The group made this recommendation "to ensure efficient spending and avoid unnecessary levies." Any carryover balance exceeding 100% would need to be justified in writing to the county budget commission.
3. Eliminate the future use of substitute levies and rename all current substitute and emergency levies to “fixed-sum levies"
The group said enacting legislation to do this would help prioritize voter transparency for levies.
4. County commissioners should review and reject or approve levies that county-wide, non-elected entities place on the ballot
In cases where the levy spans multiple counties, the group recommended that the most populated county should be responsible for approving or rejecting the levy.
5. Closing "the LLC loophole"
The group said the loophole allows for some companies to avoid paying county conveyance fees and to defer property tax reassessments when buying and selling properties. It recommended that LLCs be required to buy and sell certain real estate under the same rules that apply to the average homebuyer.
6. Support House Bill 186, as amended by the House Ways & Means Committee in June 2025
HB 186 would provide a tax credit back to property owners in a school district on the 20-mill floor. Currently, about 67% of Ohio school districts are on the 20-mill floor.
7. Support House Bill 156, with an amendment
HB 156 would create a property tax credit for senior and disabled homeowners with limited incomes.
8. Implement reforms to levy ballot language
The group recommended that the language reform be an easy-to-understand summary of what the levy does and the impact it will have on taxpayers’ future property tax liability.
9. Restrict emergency levies to entities under fiscal caution, watch or emergency
The group also recommended that emergency levies not be renewable, are limited to a five-year duration, and count towards the 20-mill floor calculation.
10. Explicitly authorize levy boards to retain interest earned on their levies
The group also recommended granting county commissioners the ability to recover the indirect costs incurred by the county in providing services to the board.
11. Improve penalty and interest processes on delinquent property taxes for qualifying homeowners
The group said penalties and fees may serve as an incentive to pay on time, but can hurt the taxpayer more.
12. Implement a tax deferral program for qualifying seniors
The group recommended the following be met for eligibility: owning and occupying a residential property for at least 10 years, being 65 years of age or older, or disabled and meeting the same income thresholds as the homestead program.
13. Property tax exemptions should be regularly reviewed and evaluated
The group said this review could be conducted by either the general assembly or another entity designated by the general assembly.
14. Sexennial reappraisal and triennial update schedule to balance reassessments across counties and years
The group recommended that the Department of Taxation rearrange when counties experience their sexennial reappraisal and triennial update.
15. Support House Bill 154
The group supported the bill, which would require that Ohio school districts be able to disapprove of a Community Reinvestment Area (CRA) program that will impact the school district.
16. Codify limits for the creation of Residential Stability Zones
The group said the program, designed to address rising property values, should do the following: target seniors below 80% of Area Median Income (AMI) in owner-occupied homes that have been owned and lived in the home by that owner for 20 years, give school boards veto power and provide limits on the number of census tracts for those included in the program.
17. Encourage the governor to form a working group to look at and analyze the efficiencies of the various levels of government
18. Solutions for Ohio's housing shortage
The group said the shortage is estimated to be more than 350,000 units statewide and that the general assembly should consider the role that housing supply plays in driving property valuations higher.
19. Abuse of property tax credit
The group encouraged the Ohio Department of Taxation to swiftly implement provisions within the state budget that aim to develop a system to review the abuse of owner-occupied property tax credits.
20. Consideration of expanding the Homestead exemptions and/or implementing a property tax Circuit breaker
The Group recommended a potential increase to both the valuation that would be exempt from property taxes and the income threshold for the Homestead Exemption program.
The 15-page report will head to the governor's desk for further review.
