Ohio Lawmakers Consider Bill to Eliminate Property Taxes Statewide
Bipartisan group of Ohio legislators pushes constitutional amendment to eliminate property taxes statewide, replacing revenue through higher sales and income taxes.
COLUMBUS, OHIO — A coalition of Ohio lawmakers is advancing legislation to eliminate property taxes throughout the state, replacing the revenue with increased sales and income taxes in what supporters call a significant tax reform proposal.
The proposal, backed by a bipartisan group of legislators, aims to address what they describe as an unfair burden on homeowners and businesses who face rising property assessments regardless of their ability to pay. The plan would require a constitutional amendment and voter approval to implement.
Revenue Replacement Plan
Under the proposed system, the state would compensate for lost property tax revenue by raising the sales tax rate and implementing higher income tax brackets for wealthy residents. Preliminary estimates suggest property taxes generate approximately $15 billion annually across Ohio’s 88 counties.
“Property taxes are fundamentally unfair because they tax wealth that exists only on paper,” said Rep. Tom Brinkman, one of the bill’s primary sponsors. “A retired person living in a home they’ve owned for 40 years shouldn’t be forced to sell because their property value increased.”
The legislation would phase out property taxes over a three-year period, giving local governments time to adjust their budgets and revenue streams.
Local Government Concerns
Municipal leaders and school district officials have expressed concerns about the proposal, arguing that property taxes provide stable, predictable funding for essential services. Local governments currently rely on property taxes to fund police and fire departments, road maintenance, and other core services.
“This would create massive uncertainty for local budgets,” said Ohio Municipal League executive director Kent Scarrett. “Sales and income taxes fluctuate with economic conditions, but property taxes provide steady revenue that communities depend on.”
School districts, which receive roughly 40 percent of their funding from local property taxes, would face particular challenges under the new system. State officials would need to develop alternative funding mechanisms to ensure educational services continue without disruption.
Implementation Timeline
If approved by the legislature, the constitutional amendment would appear on the November 2024 ballot. Voters would need to approve the measure with a simple majority for it to take effect.
The proposal includes provisions requiring the state to guarantee that local governments receive at least as much revenue as they currently collect through property taxes. However, critics question whether the state can maintain that commitment during economic downturns when sales and income tax collections typically decline.
Supporters argue that eliminating property taxes would make Ohio more attractive to businesses and retirees, potentially spurring economic growth that would offset any revenue concerns.
Similar efforts to eliminate property taxes have been attempted in other states, though none have successfully implemented such sweeping changes. Texas and Florida, which have no state income tax, still rely heavily on property taxes for local government funding.
The Ohio House Ways and Means Committee is scheduled to hold hearings on the legislation next month, with supporters hoping to build momentum for the proposal before the current legislative session ends.
