Mike Dovilla Answers Questions about Ohio's Budget

Written by State Rep. Mike Dovilla

Since the passage of the state budget in June, our office has received many questions from residents of Berea, North Royalton, Olmsted Falls, Olmsted Township and Strongsville regarding the provisions of the property tax rollback and the Homestead Exemption included in House Bill 59.  

This legislation’s tax reform package is designed to reward hardworking taxpayers, close corporate loopholes, and improve Ohio’s position as a national leader in job creation.  

As your voice in Columbus, I hope to provide the facts and greater clarity on these important matters by answering three questions frequently being asked:

How do the changes to Ohio’s tax code benefit working Ohioans?

Beginning this year, Ohio’s hardworking taxpayers will begin to realize $2.7 billion in tax relief.  Over the next three years, personal income tax will be reduced by 10 percent across the board. By reducing your personal income tax, you are in control of your money to invest, spend, and save.

Will my current property taxes go up by 12.5 percent due to the elimination of the property tax rollback?

No. Your current property tax rates will remain the same. The elimination of the rollback provides for transparency in property tax administration. Taxpayers should be able to understand more easily what services are being provided for their hard earned money. There will be no more fine print.

In the past, the true cost of property tax levies was laundered through the state capital.  For example, if Cincinnati passed a levy to increase funding for a community center, Cincinnati residents would pay 87.5 percent of the cost, and the remaining 12.5 percent would be paid for by taxes from all other areas of the state, including Northeast Ohio.  If our city is able to budget for services and capital projects responsibly, without increasing taxes, why should you be paying if another city is irresponsible with their budgeting? 

Will I lose my Homestead Exemption due to the recent budget?

No.  Any senior citizen or permanently disabled Ohioan who is currently receiving the Homestead Exemption will continue to receive it. 

When the Homestead Exemption was first enacted, it was means-tested to ensure that only the neediest Ohioans would be able to use the program.  However, in 2007 then-Governor Strickland proposed expanding the program, allowing millionaires to have their property taxes reduced at the expense of all Ohioans.  The recent budget reverts the Homestead Exemption to the rules which were in effect for over forty years, providing economic security for Ohio’s seniors who are on a fixed income and the permanently disabled to continue residing in their own home.