Currently, it is common for those seeking public office to claim they support the idea of reducing the property tax of citizens. Promises are made that if elected, the candidate will reduce property taxes. Some alter the property tax reduction claim by stating they will reduce the rate of the individual income taxation. The irrational fallacy of such promises and claims is manifold in promising reducing taxes without identifying the mechanism for raising revenue necessary to replace the services that the property tax supplied for the community.
Property taxes fund, for example, essential services like schools, emergency response, and infrastructure needs in Ohio’s communities. If that revenue disappears, municipal services are still needed. Severe cuts, or elimination, of libraries, parks, health services, and senior resources will occur.
Property taxes are based on the assessed value of your property and the buildings on it.
Every six years, property goes through a full reappraisal. Every three years, your property’s value is updated.
Your property’s value is also determined by market trends and inflation.
While the value of your property plays a significant role in deterring your taxes, other factors such as voter-approved levies and mandated state laws also have a substantial impact. In other words, citizens vote to accept tax increases for a public benefit or what is perceived as a “common good” for the community.
Abolish Ohio property tax – AxOHTax
Property taxes have been a focus of ongoing debate in Ohio. Over the past few years, Ohio lawmakers have taken steps to rein in rising bills. However, a proposed constitutional amendment would take a dramatically different approach by permanently prohibiting all property taxes statewide.
Calls to ax and reduce taxes are basically irrational upon examination. Phasing out the Ohio state property taxes with no “demonstrated plans to replace the lost revenue” will be catastrophic for all communities and the social well-being.
There was a brief time during the presidency of Bill Clinton when the national government did not engage in deficit spending. There was a surplus and even talk of reducing the national debt. Upon taking office in 1993, Clinton inherited a $290 billion deficit, which was transformed into a $70 billion surplus by 1998. Debt held by the public was reduced by hundreds of billions, with the administration aiming to eliminate it entirely by 2012. Clinton famously advocated for using the surpluses to shore up Social Security and Medicare rather than for large tax cuts.
However, the Republican Bush administration decided instead to promote tax reduction. Opponents and non-partisan groups like the Congressional Budget Office noted they did not “pay for themselves.” Instead, they contributed trillions of dollars to the national debt and increased income inequality by disproportionately benefiting the wealthy.
However, neither political party has been reluctant to promise voters tax reduction which is why our nation currently has a debt that now stands at $39,000,000,000,000+. Yes, over $39 trillion+. It took roughly 200 years to accumulate the first $1 trillion. Now we add that in a matter of months. The interest on the national debt is now one of the largest budget items.
Because property taxes fund essential local services like schools and public safety, eliminating property taxes entirely requires steep hikes in other revenue streams, such as increasing local income taxes by up to 10% or raising sales taxes dramatically.
Abolishing property taxation entirely is complex, so governments frequently rely on structural alternatives and targeted reforms instead of complete replacement:
- Income and sales tax hikes
- Income tax: Local property tax generates roughly $24 billion annually and supports 65% of local tax revenue in Ohio. Shifting the burden to income broadens the tax base but could require massive rate increases. Economists estimate that filling the revenue gap entirely with income taxes might cause state income tax rates to spike into the double digits.
- Sales tax: Raising sales or gross receipts taxes shifts the tax burden to consumers, including renters who don’t directly pay property taxes. In the event that property tax is abolished and sales tax was treated as the revenue replacement, early estimates from the Ohio Office of Budget and Management indicate sales tax rates could need to reach 15-18%.
- Targeted relief and exemptions
- Instead of a total phase-out, many states = such as Florida and Ohio – are exploring legislative limits or exemptions:
- Homestead exemptions: These reduce or eliminate taxes on owner-occupied primary residences, especially for seniors or disabled veterans.
- Capping valuation growth: Capping annual property assessment increases prevents homeowners from being taxed out of their houses during rapid housing booms.
- Instead of a total phase-out, many states = such as Florida and Ohio – are exploring legislative limits or exemptions:
- Local service fees and “land value” taxes
- User fees: Municipalities may unbundle local services and fund them through specific user fees or flat utility charges.
- Land value taxes: A growing alternative is to tax the unimproved value of the land rather than the buildings on it. This incentivizes development and penalizes vacant or underutilized property.
Understanding the trade-offs of these options depends on the local and state jurisdiction. You can review municipal budget proposals on the Ohio Municipal League or view tax policy reports provided by the Tax Foundation to see the latest legislative efforts and their economic impact in your area.
But the simple answer is any politician or individual who proposes reducing property taxation or the income tax needs to be required to submit what services will be lost, and required to explain how to replace the lost revenue for the plan to be successful. Our national debt is emblematic of the belief that you can reduce taxation without identifying the source of needed revenue.
Whenever you hear a politician promise you tax reduction, you should immediately realize that the person speaking does not have any idea of what the negative impact on your life will be.
David J. Neuendorff
Bowling Green
