CINCINNATI — Hamilton County Commissioners issued a stark warning about the potential impacts of a proposed Ohio House bill, touted as a property tax relief bill, during a regularly scheduled meeting on Tuesday, saying its passage could create a 16.1% hole in the annual operating budget.
House Bill 335 would limit how much money local governments, including municipalities and school districts, receive from rising property values through the elimination of what's called inside millage for all political subdivisions, except townships. Inside millage, up to 10 mills of property tax, is levied without the vote of residents.
"(The funding) goes towards, mostly, public safety," Hamilton County Auditor Jessica Miranda said. "It puts us as a county, and many other municipalities throughout our county, at a public safety risk, and it is a threat to defaulting on local bond obligations and lower financial credit ratings."
HB 335 would save Ohioans $3.5 billion in property taxes, which in turn, amounts to revenue losses for local governments.
"$271 million of that ($3.5 billion) would be the loss here in Hamilton County, for all of our local political jurisdictions," Miranda said. "It is predicted to result in mass layoffs of police officers, firefighters and other public servants."
WATCH: Here's how the passage of a proposed property tax relief bill could impact a local school district in the Tri-State
Bill sponsor David Thomas, R-Jefferson, said during a recent press conference that eliminating it means "when we see valuation increases, our property owners will not see their tax bills going up near what they’ve seen over the last five years."
The bill would also allow Ohio Boards of County Commissioners to match the state funding of homestead exemptions for county residents.
"Why are counties expected to foot more of the support when the state doesn't put enough skin in the game?" Miranda said.
In a statement, Rep. Jennifer Gross, R-West Chester, applauded the legislative effort.
"Ohioans are suffering due to steep property tax increases, and the time to act is now,” Gross said. "This legislation will directly impact every property owner in the 45th House District and throughout the state in a very meaningful way on their property tax bill next year."
We reached out to the Ohio Republican Party and Hamilton County Republican Party to learn their stances on the measure, but as of now, we have not heard back.
"We would be in dire straits," Loveland City Schools Superintendent Mike Broadwater said when asked about the potential impact of HB 335. "And I'm not trying to exaggerate this. We would be in dire straits."
Broadwater said the passage of the proposed legislation would cost the district nearly $6 million in annual revenue, possibly forcing cuts to the tune of 50 to 100 staff members.
"You're going to eliminate every single opportunity for kids, whether that means extracurriculars, advanced placement — you're going to lose all of that," he said. "It's going to be bare bones."
Another provision in HB 335 would allow counties to raise their sales tax by up to 1%, if voters approve of the measure at the ballot box as a means for an alternative revenue source to property tax hikes.
Miranda said about seven out of every 10 tax levies fail to pass on the ballot in Ohio.
"They have offered the solution of, 'Well, just raise your sales tax.' Easier said than done," Hamilton County Commissioner Denise Driehaus said. "Even that doesn't provide enough relief to make up for the difference."
House Bill 335 is currently in a House committee. State lawmakers plan to hold a hearing on it Wednesday, which is "invite-only," Driehaus said.
"I've never heard of an invite-only hearing ever, and I was in the state house for eight years," said Driehaus. "So, instead of having opponent or proponent testimony, it's invite only, which is really striking."
