Watch an earlier report on proposed property tax bills in the video player above.
COLUMBUS, Ohio (WCMH) – Residents across the state are feeling the financial squeeze as the tax filing deadline nears – and while it’s likely too late for state lawmakers to address taxpayers’ concerns this year, nearly three dozen bills targeting income and property taxes are in the legislative pipeline.
About 30 proposed laws seek to relieve some taxpayer burden through credits, exemption expansions and different income tax schemes. Some are a concurrence away from becoming law, while others haven’t been touched since they were introduced.
Finances – specifically tax returns – are top-of-mind for many Ohioans, evidenced by the failure of multiple school levies in the March primary. Property values have skyrocketed due to reappraisals, in some central Ohio towns upward of 60%.
Currently, the general homestead exemption is $25,000 for those earning under a certain income and who are 65 and older, permanently and totally disabled, or the surviving spouse of someone who was eligible for the credit. An enhanced exemption for disabled military veterans subtracts up to $50,000 from a home’s taxable value. An adjustment to the homestead exemption added to the state budget increases the maximum amount of the exemptions by the rate of inflation each year.
The enhanced homestead exemption for military veterans and their spouses was further expanded with a law passed in October. Under Senate Bill 43, the enhanced exemption can now be applied to the spouses of veterans who died before receiving a total disability rating. The state reimburses local taxing authorities, including school districts, for any revenue loss due to the expanded exemption, as is the case for all homestead exemptions.
Republican lawmakers, meanwhile, are taking aim at the state income tax. One proposal would replace the current tax bracket structure with a flat tax rate. Another proposal would eliminate the state income tax entirely.
Bills modifying the homestead exemption
- HB187: This bill would temporarily expand the homestead exemptions for the next three tax years. The general credit would increase to $30,000, then increase by the rate of inflation for the next two years. The enhanced exemption for disabled veterans would increase to $60,000 and then similarly increase by the rate of inflation. Under Reps. Thomas Hall (R-Madison Township) and Adam Bird’s (R-New Richmond) bill, the income eligibility threshold would temporarily increase to $75,000. While local taxing units would be fully reimbursed for any losses under this bill, school districts would only be reimbursed for half.
- STATUS: HB187 passed the House in October, and an amended version unanimously passed the Senate in December. To become law, the House has to concur with the changes made in the Senate.
- HB 378: Sponsored by Reps. Brian Lorenz (R-Powell) and Nick Santucci R-Howland Township), this bill would eliminate property tax liability for the spouses of service members who died in the line of duty.
- STATUS: This bill was referred to committee in February and awaits its first hearing.
- HB 447: Rep. Mike Loychik’s (R-Bazetta) bill would temporarily expand the homestead exemptions to up to $35,000 generally and to $69,600 for totally disabled veterans. It expands enhanced exemption eligibility for lesser amounts to partially disabled veterans. It also would limit the rate of effective millage increase of continuing levies to the rate of inflation.
- STATUS: This bill was introduced on March 12 and awaits committee referral.
- HB274: This bill, sponsored by Reps. Adam Mathews (R-Lebanon) and Richard Dell’Aquila (D-Seven Hills), establishes an enhanced homestead exemption of $50,000 for homeowners who have continuously occupied their homes for at least 20 years, so long as they meet the income limit for other homestead exemptions. Unlike other exemptions, this wouldn’t increase with inflation each year.
- STATUS: Its last hearing was Dec. 12, 2023.
- HB254: Sponsored by Reps. Tracy Richardson (R-Marysville) and Adam Holmes (R-Nashport), this bill would eliminate property taxes for totally disabled veterans. It would further exempt up to $10,000 for veterans deemed at least 50% but not totally disabled.
- STATUS: Its last hearing was Dec. 5, 2023.
- SB134: Sponsored by the now-retired Sen. Frank Hoagland, this bill would increase eligibility for the enhanced homestead exemption to veterans not rendered 100% disabled. It also creates a scale of the exemption, based on the veteran’s disability level, and caps maximum exemptions at $150,000.
- STATUS: Its first – and only – hearing in the Senate Ways and Means Committee was Sept. 20, 2023.
- HB90: Rep. Thomas Patton’s (R-Strongsville) bill increases the enhanced homestead exemption for qualifying disabled veterans to effectively eliminate their property taxes.
- STATUS: Its last hearing in the House Ways and Means Committee was Sept. 12, 2023.
- HB60: Introduced by Rep. Daniel Troy (D-Willowick), this bill increases the general homestead exemption from $25,000 to $40,000 of a home’s appraised value, then increases it each year after by the rate of inflation. The bill would also raise the modified adjusted gross income (MAGI) threshold needed to qualify for the credit from $36,100 to $45,000.
- STATUS: Its last hearing in the House Ways and Means Committee was April 18, 2023.
Other property tax bills
- HB263: A bipartisan proposal by Reps. Dani Isaacsohn (D-Cincinnati) and Thomas Hall would freeze property taxes to 2023 values for qualifying homeowners. Homeowners must be aged 65 or older, have lived in their homes for at least two years, have an annual income of less than $50,000 and a home value less than $500,000.
- STATUS: Its last hearing was Feb. 6.
- HB402: Rep. Jean Schmidt’s (R-Loveland) bill would temporarily reduce property taxes to 2022 rates while the Joint Committee on Property Tax Reform develops long-term solutions to rising property taxes.
- STATUS: This bill was introduced on Feb. 7 and awaits committee referral.
- SB153: Under Reps. George Lang (R-West Chester) and Terry Johnson’s (R-McDermott) bill, through 2025, the Department of Taxation would have to consider “current economic conditions” when recommending county property value adjustments. Tax commissioners would also be disallowed from giving higher or lower weight to a particular year’s sales data when performing appraisals.
- STATUS: Its last committee hearing was Oct. 11, 2023.
- SB136: Sponsored by Sen. Hearcel Craig (D-Columbus), this bill caps annual property tax increases at 5% for homeowners who earn below the median income level of their county of residence.
- STATUS: Its last – and only – hearing was Sept. 20, 2023.
Bills addressing income taxes
- HB386/SB216: This legislation, introduced in both chambers, would phase out the state income tax over the next six years. Additionally, it would require that the commercial activity tax be repealed by 2029.
- STATUS: This bill was introduced in January and awaits its first committee hearing.
- HB1: Rep. Adam Mathews’ bill would establish a flat income tax rate of $260.69 plus 2.75% on all income over $26,050. Additionally, it would decrease the percentage of a property’s real value subject to taxation from 35% to 31.5%, decreasing each year thereafter by the rate of inflation.
- STATUS: This bill’s last hearing was April 25, 2023.
- HB405: For those either over 59 or who are permanently and totally disabled, Rep. Richard Dell’Aquila’s bill would allow up to a $5,000 credit for disability-related home expenses, including the addition of accessibility features, purchase of assistive technology or hiring of a home aid.
- STATUS: This bill was introduced Feb. 12 and awaits committee referral.
- HB105: This bill limits fines for failing to timely file municipal income tax returns to a one-time fee of $25.
- STATUS: It passed the house in May 2023 and awaits its first Senate committee hearing.
- HB199: This bill modifies the joint filing income tax credit by ensuring that taxpayers filing jointly do not pay more than they would if they filed separately. Sponsored by Reps. Tom Young (R-Washington Township) and Bill Dean (R-Xenia), it also eliminates a current $650 tax credit cap.
- STATUS: Its last hearing was Sept. 19, 2023.
- HB126: This bill expands the military pay income tax credit for armed services members to include members of the National Oceanic and Atmospheric Administration, the Public Health Service and the Space Force.
- STATUS: Its last hearing was May 23, 2023.
- HB125: This bill increases the income tax credit currently available for contributions to 529 college savings plans and ABLE disability savings plans to $8,000, regardless of filing jointly or separately. Each year after, it indexes the maximum credit to inflation.
- STATUS: Its last hearing was June 6, 2023.
- HB39: This proposal makes the state’s earned income tax credit partially refundable for those under a certain income threshold. If the credit amount exceeds the amount a taxpayer owes, they can get up to 10% of their federal earned income tax credit as a refund from the state. The income limit is $17,640 for one person with no children.
- STATUS: Its first, and only, committee hearing was May 9, 2023.
Miscellaneous tax credits
- HB 290: A Democrat-proposed bill would establish the Thriving Families tax credit. Households earning less than $65,000 would get $1,000 for every child under 6 and $500 for every minor child over 6. For those earning less than $85,000, the credit would decrease by 5% for every $1,000 over $65,000.
- STATUS: This bill was referred to committee in October and awaits its first hearing.
- SB189: Another Democrat-proposed bill would authorize an income tax credit up to $250 for attending a firearms safety course or purchasing firearms storage or a locking device.
- STATUS: Its first hearing was Jan. 24.
- SB159: Under this proposal, up to half of a person’s tax liability could be eliminated for their donations to anti-abortion counseling centers.
- STATUS: Its last hearing in the Senate Finance Committee was Feb. 27.