Ohio governor warns it would be 'absolutely devastating' if property taxes are eliminated

Ohio Governor Mike DeWine has cautioned against a proposed constitutional amendment that could eliminate property taxes in the state, claiming it would come at a huge cost for both the state and the public. The governor argues that removing property taxes will put pressure on the state's finances, making it tougher to fund schools, police, and the fire department. Thus, to make up for the lost revenue, DeWine claimed the state will have to raise the sales tax by up to 20% on products, which will hurt consumers. However, campaigners advocating for reform say it isn't their problem. News5 Cleveland reported.

Property taxes in Ohio are commonly calculated as a percentage of the property's assessed value; thus, as the property value rises over time, so does the amount due in taxes. According to a February 4 memo from the Ohio Office of Budget Management (OBM), current property taxes generate about $24 billion each year for local governments across the state. "To put this into perspective, that’s equal to the total revenue from Ohio’s state income and sales taxes combined," the memo reads. Speaking to reporters last week, DeWine warned the sales tax could be hiked by "17, 18, 19, 20%" on products, "so it would just be absolutely devastating." The current state sales tax rate is 5.75%. “We would be in a huge crisis in the state of Ohio; the legislature at that point would have to figure out where that money comes from," said the governor, as per Newsweek.

The other source of revenue, income tax, which, as per the OBM, is flat at 2.75%, would need to be quadrupled to make up for the money, as it generated less than half the deficit, $10.5 billion in fiscal year 2025. "We could go from income tax, which is the second lowest in all the states in the union that have an income tax, to by far the highest, with an astronomical figure," Governor DeWine added.

However, the group, Citizens for Property Tax Reform, led by homeowner Beth Blackmarr, which is seeking an amendment on the upcoming November ballot, isn't concerned about the revenue or sales tax. "The ever-increasing property taxes truly are pricing people out of their homes," Brian Massie, a resident of Concord Township and leader of the campaign, told News5. He is part of the Committee to Abolish Ohio Property Taxes, which is currently collecting signatures to get the amendment on the ballot later this year.

"The people in the state of Ohio have had enough. They want their freedom and liberty, and I don't know why these legislators don't understand that," Massie told the publication. He added that it wasn't the campaign's problem to figure out how the state would make up for the money. "They expect me and our group to have an answer on how we're going to replace all of these property taxes," he said. "The state legislators, it is incumbent upon them, to go back to the drawing board," Massie added. Amid the ongoing debate, the supporters of the campaign need to gather 413,000 signatures, which would be enough for the proposed amendment to be included on the November ballot.  

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