Answers to your Questions
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EXACTLY WHAT TAXES ARE GOING TO BE ELIMINATED?
The initiative targets the complete elimination of property taxes including tax on improvements on property in Ohio. This includes taxes levied on real estate owned by individuals, farms, and businesses.
WHAT ABOUT MY LOCAL POLICE AND FIRE?
We are NOT for defunding essential services, but re-funding them in a more equitable way.
The goal is for all essential services to be funded in a balanced and transparent way. More information will be coming on specific ways for townships to fund essential services
WON'T SCHOOLS SHUT DOWN?
No, schools will not shut down. However, schools will undergo a shift in where they get funding. Unfortunately, on average 70% of property taxes go to local schools. Additionally, this funding is not balanced between high-income and low-income districts. The DeRolph V. State of Ohio case exposes this concern. The Ohio Legislature continues to try to balance funding across all districts further complicating school funding. Currently, the plan to balance funding has been called unsustainable. This is our opportunity as Ohioans to bring stability to school funding.
WHAT ABOUT BUSINESS TAXES?
Yes, the proposal includes the elimination of property taxes for businesses. This measure is expected to significantly benefit small businesses, reduce operational costs, and stimulate economic growth throughout the state. Currently, large businesses ask locations to compete by offering abatements, or a cut in taxes, mostly property taxes. Becoming a property tax free state will create an attractive environment for business investment and development.
BUSINESSES ALREADY GET TAX RELIEF
While it’s true that some businesses receive property tax relief, current measures are selective and benefit only certain businesses. The elimination of property taxes for all businesses will level the playing field. Ohio will attract a wider range of businesses, without favoritism based on political contributions or other factors. This eliminates the need for businesses to haggle to get the best deal. Abolishing property taxes will put the “OPEN for BUSINESS” sign on Ohio bring jobs and revenue into the state. It has been a long time since parents told their children to ‘Go to Ohio because that is where the jobs are’. Together we can bring that reality back.
WHY RENTERS SHOULD CARE
Renters pay property tax as part of their rent. As property taxes rise so will your rent. Additionally, being evicted from your home is incredibly painful and disruptive, imagine being 80 years old and being evicted from your home! If you cannot pay the rent when it goes up you will be evicted. Property taxes are immoral and impact everyone.
WHAT IS THE HOMESTED EXEMPTION?
The Homestead Exemption is a type of safety net for low-income elderly, disabled, and disabled veterans. The homeowner must have an earned income below $40,000 which includes Social Security. If you meet the criteria you can then get a reduction of the value of your home. Which in turn decreases the amount of property tax you would have to pay. This is a small help as property values increase along with the tax due.
The question remains, once your home is paid off, why must you continue to pay taxes on it, as if you are selling it? If you don’t pay, you will lose your home!
Homeowners on a fixed income suffer the most from increased valuations. As soon as a home owner misses one property tax payment, penalties and interest are added to their bill. This maks it difficult to catch back up. After 3 missed payments a house can experience Tax Foreclosure.
WHAT IS TAX FORECLOSURE?
Tax foreclosure can occure when a property owner has missed three payments or 1.5 years. At this point the county can take the property and sell it to collect the taxes. Additionally, penalties are added to the amount due, increasing the debt.
Loss of a job, medical emergency , or other life events can put anyone behind for 6 months or a year. Every county handles tax foreclosures however they see fit. County Treasurers do have payment plans but they are limited and can be extremely difficult to maintain.
Auctions, Sherrif sales, or bulk sales are some of the methods used to sell a tax foreclosed property. Eventually, they may be deemed abandoned properties.
Losing a home to tax forclosue will leave you homeless. Owners have a right to any money gained from the sale over the tax due, but counties are only concerned with getting enough to cover the tax and penalty.
WHAT IS THE DIFFERENCE BETWEEN STATE FUNDING AND PROPERTY TAX FUNDING FOR SCHOOLS?
All property taxes are collected and remain local; therefore, the state never has access to them. State funding of schools in Ohio comes from several sources including income tax, sales tax, and what is referred to as a ‘sin tax’ such as the lottery, alcohol, tobacco, etc. It is through the state funding that law makers have tried to rectify the DeRolph decision. Normalize the differences between low-income communities and high-income communities. This issue at hand pre-dates the DeRolph decision: poor students stuck in severely under performing schools. There are many issues surrounding school funding that are not at issue with the property tax funding.
All schools can collect income or sales taxes but only one-third access these funding streams.