A Republican-supported bill that would provide more transparency for local property tax exemptions passed in the Ohio Senate.
House Bill (HB) 66, sponsored by state Representative James Hoops (R-Napoleon), would require the Ohio Tax Commissioner‘s biennial tax expenditure report to include information on local property tax exemptions and the Tax Expenditure Review Committee to review local property tax exemptions periodically.
According to Hoops, for almost a century, the Ohio Department of Taxation has published a biennial report recording a complete list and total dollar amount of all state tax exemptions currently enacted by the General Assembly (R.C. Sec. 5703.48).
“The biennial report is a great tool that provides lawmakers and taxpayers a better understanding of what businesses or individuals are exempt from paying state tax dollars. By adding local property tax exemptions to this report, we can get a better understanding of our local tax base, which funds important local services and public education,” Hoops said.
HB 66 would also add local property tax exemptions to the tax commissioner’s biennial report.
“This added information and transparency will provide to our constituents and the General Assembly a better understanding of our local tax base, which funds many of our local services and much of our public education,” Hoops said.
The legislation also requires the Tax Expenditure Review Committee to intermittently review each local property tax exemption (R.C. Sec. 5703.95). The committee, created in HB 9 of the 131st General Assembly, reviews all current state tax expenditures at a minimum of once every eight years and makes recommendations on whether each tax expenditure should be continued, modified, repealed or scheduled for further review at a later time. HB 66 would add local property tax exemptions to the same eight-year review process.
“By including property tax exemptions into the study committee, I believe we can better determine what property tax exemptions are working for Ohioans. Ohio should have a mechanism to review property tax exemptions and make sure they are used as intended and remain necessary for the state’s people,” Hoops said.
The County Auditors’ Association of Ohio, County Commissioners Association of Ohio, Ohio School Boards Association, and Ohio Association of School Business Officials have expressed their support for the measure.
According to Senior Policy Analyst at the County Commissioners Association of Ohio Jon Honeck, “Property tax exemptions should be monitored closely to make sure they are being used to fulfill their intended purposes.”
Green County Auditor David Graham said that “the bill has great value for future policymakers.”
The legislation passed in the Senate Ways and Means Committee 66-14.
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Hannah Poling is a lead reporter at The Ohio Star and The Star News Network. Follow Hannah on Twitter @HannahPoling1. Email tips to [email protected].
Photo “James Hoops” by The Ohio House of Representatives. Background Photo “Ohio Statehouse” by â±®. CC BY-SA 4.0.
