News
News Home
Quick Bites
Exploradio
News Archive
News Channel
Special Features
NPR
nowplaying
On AirNewsClassical
Loading...
  
School Closings
WKSU Support
Funding for WKSU is made possible in part through support from the following businesses and organizations.

Don Drumm Studios

Wayside Furniture

The Holden Arboretum


For more information on how your company or organization can support WKSU, download the WKSU Media Kit.

(WKSU Media Kit PDF icon )


Donate Your Vehicle to WKSU

Programs Schedule Make A Pledge Member BenefitsFAQ/HelpContact Us
Education


Ohio GOP lawmakers shift toward higher property taxes, lower income taxes
Ohio's new two-year budget may gradually eliminate a tax-break for homeowners
by WKSU's M.L. SCHULTZE


Web Editor
M.L. Schultze
 
Courtesy of 401(K) 2013; flickr
Download (WKSU Only)
In The Region:

Ohio’s GOP lawmakers are backing a plan that would cut income and businesses taxes, but would increase future taxes on homeowners by more than 12 percent. WKSU’s M.L. Schultze spoke with a school treasurer who expects such a move will make it harder to pass local levies – and to understand your tax bill.

 

 

LISTEN: School treasurer/tax expert Mike Sobul on the give and take on taxes

Other options:
Windows Media / MP3 Download (3:51)


Mike Sobul wasn’t around the Statehouse back in 1971, when lawmakers passed Ohio’s first income tax and pretty much assured Gov. John Gilligan, would be a one-term governor.

But during Sobul’s 25 years with the Ohio Department of Taxation -- followed by the last two as treasurer of Granville schools – he’s followed the give-and-take of tax policies. He says, with that first income tax came a local tax cut – and a safety net for local schools.

“At that time, all real property got a 10 percent break on  taxes that was then paid by the state to the jurisdictions so the jurisdictions didn’t lose money by that.”

Then came a 2.5 percent further rollback in 1979, again with the state promising to make up the lost revenue to local schools and governments.

“Actually it works just like the 10 percent rollback; it’s just a little more restrictive. It only applies to owner-occupied homes and it only applies to the home and one surrounding acre.”

An increasingly pricey proposition
Over the years, there was talk of cutting the state’s reimbursement to the locals. In  2005, the state changed its business tax code. Business got some breaks, but it also lost the real-estate rollback. 

The talk of bigger changes escalated during the go-go years of the housing boom. That’s because the state’s costs, says Sobul, were getting out of control.

“It was one of the fastest growing line items in the state budget, (and…) the state really had no control over it. Before we got to the real-estate crash four years ago, … it was going up at a rate of 6 to 6.5 percent a year.”

How residential real-estate reductions work, per the County Auditors Association of Ohio:

The 10% rollback applies to non-business property, defined by state law to include all uses of property except farming; leasing property for farming; occupying or holding property improved with single-family, two-family, or three-family dwellings; or holding vacant land that the county auditor determines will be used for farming or to develop single-family, two-family, or three-family dwellings. 

The County Auditor's office also administers the 2 1/2% Property Tax Reduction Law for residential and agricultural parcels on which there is a home site occupied by the owner.

In addition, the Homestead Exemption is open to any Ohio homeowner who currently lives in their home including manufactured homes, and that home is their primary residence,  who:

•        Is at least 65 years old or will reach age 65 during the current tax year; or

•        Is certified totally and permanently disabled as of Jan. 1 of the current tax year, regardless of age; or

•        Is the surviving spouse of a qualified homeowner, and who was at least 59 years old on the date of their spouse’s death. Manufactured homes are also included in this Homestead Program.

Making local levies a harder sell
But Sobul says eliminating the state reimbursement all together will likely make local levies a harder sell. That’s because levy supporters often hone their sales pitches down to a concrete dollar figure: This levy will cost the owner of a $100,000 home this amount.

And, says Sobul, “if they’re doing it (their job) right,” they make sure to deduct that 12.5 percent when they explaining a levy to homeowners.

Sobul says even a slightly higher cost the homeowners “can’t help” in passing any levy.

Different rules for old and new levies
The new rules would not apply to existing levies, nor to their renewals – but  only to new money issues passed after this year.

But oOverall,  Sobul maintains, the whole process will be more complicated “when you have some levies that are going to get the rollback and some levies that are not.”

“It becomes a little bit harder to explain to people. People looking at their bills, it’s a little bit harder to calculate.”

“Now you go on (the county tax Web sites) and say, ‘My starting  bill is $1,000 and my 10 percent rollback is $100.’ … Well going forward as you start getting new levies, that 10 percent rollback isn’t going to be 10 percent anymore.”

Mike Sobul’s Granville school district plans to put a levy on the November ballot. If it passes, his district will at least delay that confusion. But he doesn’t see a mad rush by school districts to get on the ballot this year – at least no more of a rush than in recent years.

Add Your Comment
Name:

Location:

E-mail: (not published, only used to contact you about your comment)


Comments:




 
Page Options

Print this page

E-Mail this page / Send mp3

Share on Facebook




Stories with Recent Comments

HOF's Canton expansion could take an island and make it a village
I live in the block from Broad St to the Hall of Fame and will be impacted by the expansion. I am in the process of selling my home and planned to long before i...

Cleveland redeploys police to replace rejected red-light traffic cameras
Periodic rotational enforcement without warning does NOT change behavior and the city officials know that. This is the basis of all officer-run enforcement trap...

New enrollment period offers more insurance options
The removal of federal funding for healthcare CO-OPs may limit the growth of the CO-OP movement. http://www.healthcaretownhall.com/?p=6381

The family of Boardman vet killed in Vietnam receives his medals
My name is Mike Eisenbraun. I am Larry's brother. I was 14 years old when Larry was killed in Vietnam. He has been gone for 46 years but it seems like yester...

Cleveland seniors are creating new wealth -- and facing new challenges
Why is anyone surprised that we people over 65 are not retiring? If you have been paying attention, defined company funded pensions were phasing out in the eigh...

Ohio company cuts off a dairy supplier after allegations of animal abuse
these people should be held accountable for their actions. i would be more than pleased to see a year or more behind bars. i will NEVER eat anything that comes ...

Goodyear recruits thousands of vets
What a wonderful interview! Excellent reporting skills by a talented young reporter! I look forward to hearing more from Ms. Schley!

Ohio Democratic Party begins the rebuilding process
I agree 100% with Sen. Brown. I think it is absolutely critical for the Democratic Party in Ohio to engage in the long, tedious, hard task of re-building from t...

They're talking again in the Macedonia bridge dispute
Norfolk Southern says the Ledge road bridge meets regulations for train traffic, however it was built as an overpass for a roadway and/or farm usage. I think t...

Cleveland City Council to consider transgender public restroom law
this is sick. I do not want my daughter in the same bathroom as a perverted 45 year old man. this proposed legislation could seriously damage the security of ch...

Copyright © 2014 WKSU Public Radio, All Rights Reserved.

 
In Partnership With:

NPR PRI Kent State University

listen in windows media format listen in realplayer format Car Talk Hosts: Tom & Ray Magliozzi Fresh Air Host: Terry Gross A Service of Kent State University 89.7 WKSU | NPR.Classical.Other smart stuff. NPR Senior Correspondent: Noah Adams Living on Earth Host: Steve Curwood 89.7 WKSU | NPR.Classical.Other smart stuff. A Service of Kent State University