Additional Coverage:
- Ohio governor warns it would be ‘absolutely devastating’ if property taxes are eliminated (marketrealist.com)
Ohio Governor Sounds Alarm Over Proposed Property Tax Elimination, Warns of “Absolutely Devastating” Consequences
Columbus, OH – Ohio Governor Mike DeWine is issuing a stark warning against a proposed constitutional amendment that aims to abolish property taxes across the state, cautioning that such a move would trigger a massive financial crisis and necessitate drastic increases in other taxes. The governor argues that eliminating the $24 billion generated annually by property taxes – revenue vital for local governments, schools, police, and fire departments – would force the state to hike sales taxes by up to 20% or quadruple income taxes.
According to a recent memo from the Ohio Office of Budget Management (OBM), current property taxes are a foundational pillar of local funding, generating an amount equivalent to the state’s total income and sales tax revenues combined. Governor DeWine emphasized the severity of the potential impact last week, stating that a sales tax increase of “17, 18, 19, 20%” would be “absolutely devastating” for consumers, who currently pay a state sales tax rate of 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,” DeWine told reporters. He further elaborated that if the state were to rely on income tax to cover the deficit, the current flat rate of 2.75% – already one of the lowest in the nation – would need to be quadrupled, transforming it into “by far the highest, with an astronomical figure.” The OBM estimates income tax would only generate $10.5 billion in fiscal year 2025, less than half of the needed revenue.
However, advocates for the property tax elimination, spearheaded by groups like Citizens for Property Tax Reform and the Committee to Abolish Ohio Property Taxes, are pushing back. Led by homeowner Beth Blackmarr and resident Brian Massie of Concord Township, these campaigners are actively collecting signatures to get the amendment on the November ballot.
Massie, speaking to News5, stated that the ever-increasing property taxes are “truly pricing people out of their homes.” He conveyed a sentiment of widespread public frustration, adding, “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 also dismissed concerns about how the state would replace the lost revenue, asserting that it is not the campaigners’ responsibility to devise a solution. “They expect me and our group to have an answer on how we’re going to replace all of these property taxes,” he said, emphasizing, “The state legislators, it is incumbent upon them, to go back to the drawing board.”
The debate continues as proponents of the amendment work to gather the necessary 413,000 signatures to secure a spot on the November ballot.