Two Ohio lawmakers are pitching a constitutional amendment to limit property tax hikes when home values go up.
The proposal from Reps. Jeff LaRe, R-Violet Township, and Kevin Miller, R-Newark, would tie increases in appraised value to inflation and cap it at 3%. Any increases beyond that would be exempt from taxes as long as the owner of the home or their spouse continue living there.
The cap wouldn't apply to home improvements that raise the property's value, unless the owner needed to repair damage.
"Ohioans deserve greater certainty when it comes to the cost of staying in their homes," Miller said in a statement. "Homeowners can’t control what happens to property values around them, and they shouldn't face sudden tax increases simply because
their neighborhood has become more valuable."
The idea comes months after Gov. Mike DeWine signed legislation to provide property tax credits to certain homeowners and contain future tax hikes. Another new law limits the growth of unvoted property taxes, also known as inside millage, by tying it to inflation.
Ohio has a backstop in state law to ensure rising home values don't automatically lead to tax increases, but it failed to prevent substantial hikes for many homeowners in 2023 and 2024. That stoked frustration across the state and inspired a citizen-led initiative to abolish property taxes altogether.
LaRe said that effort didn't inspire his and Miller's proposed amendment, which they want to place on the May 2027 ballot.
"We want something that could muster the votes needed to pass on the ballot," LaRe told the statehouse bureau. "We wanted to be careful that this wasn’t going to be to the detriment of our local governments and recipients of property tax dollars. But we also wanted to make sure the relief to the property owners is meaningful."
The measure, if enacted, would have a limited impact on homeowners because of the laws enacted last year, according to a legislative fiscal analysis. But it could reduce property tax liability by up to 15% if values skyrocket like they did after the COVID-19 pandemic.
As of now, the amendment's prospects are unclear. It would need to pass the House and Senate with 60% of the vote in both chambers. LaRe said it will be a "heavy lift" to get that done before the legislative session ends in December.
State government reporter Haley BeMiller can be reached at hbemiller@usatodayco.com or @haleybemiller on X.
This article originally appeared on The Columbus Dispatch: Ohio lawmakers pitch new ballot issue to limit property tax hikes
