NW Ohio Times

State Representatives Jim Hoops and David Thomas have introduced a bill aimed at reforming property tax legislation in Ohio. The proposed 20 Mill Floor Inflation Cap seeks to limit the revenue school districts can receive from the 20 Mill Floor to inflation, aiming to mitigate unvoted property tax increases.

Jim Hoops, reflecting on recent trends, stated, “Since the pandemic, the perfect storm has arisen,” highlighting issues such as housing shortages and rising construction costs that have driven up home sale prices. He noted that historical measures like the 920 factor are now ineffective due to changes in property values and existing rules.

The legislation targets Ohio's school districts, which are guaranteed a minimum of 20 Mills or 2% of their district’s property value in tax rate. Currently, about 400 districts fall below this rate but still experience increased taxpayer burdens as property values rise.

David Thomas emphasized voter involvement in tax decisions: “I’m a firm believer that if you want more than inflation in tax revenue, the voters should approve that.”

Discussions involving stakeholders from various sectors have been ongoing since November to ensure the reform is legally sound and beneficial for homeowners. The legislators aim for swift legislative action to prevent further financial strain on taxpayers due to schools falling below the floor.

Thomas described the proposal as foundational: “This proposal is like a base layer, something that must be done as a core aspect to property tax reform with other ideas added on top to give additional relief.”

The bill is awaiting assignment of a number and committee review in the House of Representatives. Property tax reform remains a significant focus within this General Assembly session.