Lawmakers promise property tax reform but say it’s tricky

Butler County Auditor Nancy Nix convened a property tax forum with taxpayers and state lawmakers to discuss measures being taken in Columbus to provide much needed relief.

Credit: Submitted

Credit: Submitted

Butler County Auditor Nancy Nix convened a property tax forum with taxpayers and state lawmakers to discuss measures being taken in Columbus to provide much needed relief.

State lawmakers representing Butler County met with taxpayers last week to explain the moves the legislature is making to try and provide desperately needed property tax relief.

County Auditor Nancy Nix told the roomful of taxpayers she and other county auditors are convening these forums to “put some pressure on our lawmakers to give us property tax relief we have long needed.”

Nix invited state representatives Rodney Creech, Jennifer Gross, Thomas Hall and Diane Mullins to explain why attempts to provide relief previously have failed and enumerate what’s in the works now.

County Auditor Nancy Nix said hopes taxpayers will  “put some pressure on our lawmakers to give us property tax relief we have long needed.”  NICK GRAHAM/STAFF

Credit: Nick Graham

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Credit: Nick Graham

Taxpayers saw a large increase following the 2023 triennial update when property values soared by an average 37% in Butler County. Nix’s chief appraiser Mike Gildea told the gathering taxpayers will likely see another large increase following the 2026 property reappraisal that is underway now for taxes payable in 2027.

“I am the one responsible for raising land values, industrial values, apartment values, farm values, so if anyone is to blame, you’re mad at anyone, it’s me because we’re interpreting the market and we’re seeing market conditions significantly increasing,” he said adding from 2014 through 2024 single family home sales have increased 107%.

“I anticipate another increase in value, I don’t anticipate 37% but maybe somewhere in the lines of 20 to 25%, but it’s still going up unless something drastic happens to our economy.”

The general assembly has introduced 21 bills that touch property tax reform this year, 15 in the House and six in the Senate. A dozen are recycled ideas from the last two years when 23 bills were introduced, but only two measures became law, namely indexing the homestead exemption to inflation and a small measure for surviving spouses of disabled veterans.

Ironically the House introduced it’s version of the state biennial budget on Tuesday — the day after the forum — and none of the bills that have been introduced that require state funding are included.

The only property tax relief measure is a new plan that decreases the tax rates of any school district — schools receive the lion’s share of property taxes — that has more than 25% carryover from the previous year. Lawmakers say there are 528 school districts holding $10.5 billion in carryover. The budget would also add $555 million to state-paid school funding.

Hall said the House version of the budget will likely be torn apart in the Senate and it will go to a conference committee to work it out.

He said meaningful reform during the last General Assembly proved impossible because only a few counties had experienced the huge property value spikes, now everyone has so there is a will among legislators to make changes. But he cautioned it will likely take time.

“My biggest belief is we need to change the system of property taxes,” Hall said. “Now that’s not going to decrease your property taxes tomorrow, or next Monday or next Friday but if we change the system we will be able to change your property taxes long-term.”

The first property tax bill that has gained traction this year is House Bill 28 which targets the system by prohibiting taxing bodies from using replacement tax levies. Hall co-sponsored it with Rep. Adam Matthews, a Republican from Lebanon, and it passed the House by a vote of 62-to-30 on March 19.

Hall said taxing bodies often use these types of levies because people assume a replacement won’t raise taxes, but they do.

Ross Twp. Trustee Russ McGurrin who was in the audience questioned the bill saying “that penalizes townships who are being forthright and transparent instead of admonishing the ones that aren’t.”

Hall said not everybody is as transparent and they need to look at the whole state.

Creech told the group governing isn’t easy and they are trying to find the best way forward but there are consequences to every move they make.

He said under new leadership with House Speaker Matt Huffman (R-Lima) and Senate President Rob McColley, (R-Napoleon) things will get done, “bear with us, a lot of us have never dealt with this, but we are in the fight.”

“There’s nobody that I’m aware of in Columbus that’s not for reducing our property taxes, we’ve just got to figure out the best way,” Creech said and later added, “Just like the old science class, for every action there’s a reaction and you think you’re fixing something and maybe you are for some but you’re making worse for others. Every time you move a piece other pieces move too.”

Gross went through a number of the bills that are up for consideration — many do get at the system and don’t need appropriations so they are not included in the budget — but she reminded everyone since property taxes are purely a local revenue source, the taxpayers have control.

“When you vote on levies you are raising your own property tax,” she said. “It may be a good thing, it may be elderly, mental health, it may be libraries, it may be schools but every time you vote on a levy you are raising your own property tax.”

Mullins is the freshman legislator among the five representing the county in Columbus and she also asked people to have patience, saying they may not see relief this year but surely in 2026.

“When I went up there I thought I was going to grab that bill with property taxes because I didn’t know how it worked and start slashing it overnight, in 24 hours,” she said. “It doesn’t work that way, it’s a process, but we’re going to work on it and we’re going to get it done and you’ll see relief.”

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