Ohio voters may soon have the opportunity to vote on a constitutional amendment to eliminate property taxes.
Ohio Attorney General Dave Yost’s office received a petition titled “Abolishment of Taxes on Real Property” on May 1.
“The proposed amendment would abolish taxes on real property and prohibit any future taxes on real property,” according to the amendment summary. “As used in this Section, ‘real property’ includes land itself, all growing crops therein, and all buildings, structures, and improvements permanently attached to the land.”
Under state law, the attorney general’s office determines whether the submitted language “fairly and truthfully” encapsulates the proposed constitutional amendment. After assessing the submission, Yost’s office accepted the proposed amendment’s petition title and summary.
The amendment comes as Ohio’s spending continues to increase.
“Having carefully examined this submission, I conclude that the title and summary are fair and truthful statements of the proposed constitutional amendment,” Yost said in a letter sent to the petitioners.
Following Yost’s sign-off, the Ohio Ballot Board will decide if the proposal contains one or multiple constitutional amendments. Should the board certify the proposal, its petitioners must gather registered voters’ signatures totaling at least 10% of the ballots cast in the last gubernatorial election and from at least 44 of the state’s 88 counties
Additionally, the number from each county must total at least 5% of the ballots cast in the latest gubernatorial election.
Suppose the Ohio Secretary of State’s Office verifies sufficient signatures at least 65 days before the election. In that case, the proposed amendment will be added to the ballot during the next regular or general election at least 125 days after filing a petition.
According to the Tax Foundation, Ohio’s effective property tax rate in 2023 was 1.31%, up from 1.23% a year earlier. The Buckeye State ranked eighth nationally for its property tax rate.
Ohio Gov. Mike DeWine’s original two-year executive budget called for $108.6 billion in spending in fiscal 2026 and $110.7 billion in fiscal 2027. According to the Legislative Service Commission (LSC), the state’s budget was roughly $62.1 billion in fiscal 2016.
The House’s substitute version lowers the budget to over $100.1 billion in fiscal 2026 and more than $102.1 billion in fiscal 2027.
Shortly before the start of the session, the Joint Committee on Property Tax Review and Reform released a list of 21 recommendations following a year-long review of the state’s property tax system. Property taxes are the oldest tax levied in Ohio.
Among the recommendations, the committee said lawmakers “should find ways to simplify the process of levying and collecting property taxes and investigate ways to make it easier for all Ohioans to understand” and “consider reviewing the distribution formula for guaranteed inside millage to promote fairness based on taxing authorities’ current day services and funding needs.”
In March, the Ohio House passed House Bill 28 to eliminate local jurisdictions’ authority to advance replacement property tax levies. Proponents said the proposal would increase local control of property taxes and give voters more power.
The version of House Bill 96 that the Ohio House passed includes what Republicans said was a first-of-its-kind property tax relief provision.
The measure would distribute more than $4 billion in unspent funds back to Ohioans through property tax relief. As passed, the bill would implement a process for schools that carry forward more than 30% in unspent cash at the end of each year to return the money to Ohio taxpayers.
According to a release, school districts’ cash carryovers have risen from $3.6 billion in 2012, when tracking began, to $10.5 billion today. In fiscal 2024, 486 traditional school districts carried over cash greater than 30% of their expenditures that year.
“House Bill 96 paves the way for the largest property tax relief effort in state history, while increasing funding for every public school district in Ohio, and making necessary reforms to government from top to bottom,” House Finance Chair Brian Stewart, R-Ashville, said in a release after the bill’s passage.
