State Plan Affects Local Taxpayer Support.

 State Legislature’s Plan Another Attack On Local Governments And Schools

DDN: The Plan for property taxes

“The plan rolls back state-paid reductions for property taxpayers for new and replacement levies such as for schools, libraries and parks. Currently, the state pays 12.5 percent of taxpayers’ bills, so eliminating the reductions means higher tax bills for home and property owners on future levies. Critics say this provision would make it more difficult for school districts and other local government municipalities to pass levies, another hit to jurisdictions still hurting from 2011 budget cuts.”

What does this means for local governments that need to raise revenue by placing a new tax levy on the ballot?

My analysis: For example, as a result of state education funding reductions, a school district needs to ask the voters to approve a new five-mill levy.

Under current law the owner of a $150,000 home would have to pay $230 per year.  Under the proposed legislation that same property owner would pay $263.

DDN: “Bottom line: Property taxes could increase in future years more than they would under current law for property owners in jurisdictions passing new levies. The homestead exemption that Ohio senior citizens receive on their property taxes would require means testing under the new plan. Current seniors would not be impacted, but future seniors above a certain income would not be eligable for the exemption.”