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State Representative Jim Buchy
Property Tax Changes
Restores Fairness, Honesty to Ohio Taxpayers
Through talking to constituents and following various media sources
across the state, I have noticed that there seems to be some confusion
and questions regarding the changes in the budget affecting property
taxes.
One provision in the budget effectively rolled back the state’s
12.5-percent property tax exemption. Basically, the state paid the
first 12.5 percent of a homeowner’s property taxes that were imposed
though local levies. That exemption is no longer available.
But to fully understand this issue, I think it is important to put it
in historical context. The exemption began at 10 percent back in 1971
as a sweetener to persuade legislators to implement a state income tax.
Over the years, the number increased by another 2.5 percent. However,
it is important to understand that the state (i.e. government) cannot
“pay” anything without first collecting it from taxpayers. All
government money is first created in the private sector and then
collected through taxation. Only after that process occurs does the
state have any money to distribute.
People at home don’t see that, however, because they just think it is a
gift from the state. What resulted was simply that the state taxed
Ohioans more to provide “tax relief” to property owners. Another unfair
and often overlooked part of this deal is that it required seniors and
low-income Ohioans to pay for the system, regardless of whether they
even owned property.
In the first year that that was in effect, it cost the state $61
million to give back to schools. By last year, that number had swelled
to more than $1 billion. Remember, that is still the taxpayers’ money;
it is simply being sent to Columbus and then being sent back.
By rolling back that policy, Ohioans now know what is what and are no
longer led to believe that the state is providing something that in
reality it was merely grabbing from another pocket.
This provision does not take effect until any new levies are put on the
ballot and passed. Everything that is in place now will not be impacted
by this change, which is fair because we do not want to change the
rules halfway through the game. But I look forward to it taking effect
because I think it more honest and fair to Ohio’s taxpayers.
Please inform me of your opinions on current topics by completing a
survey at tinyurl.com/buchyaug. Thank you for staying in touch with me,
your community and the many issues facing fellow Ohioans today.
Your feedback helps guide the legislative priorities and is strongly
appreciated.
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