Property Tax Relief Proposal

June 19, 2025 by Allison Wilson

As the demand for property tax relief sweeps Ohio, county auditors from across the state are pushing a plan they believe will satisfy the need.

The proposal — presented in a June 12 press conference at Willoughby City Hall, one of many conferences the County Auditor’s Association of Ohio has spoken at — is four-pronged.

The Need for Relief

The real estate market has been “off the charts,” Montgomery County Auditor Karl Keith said. Property values have grown in response to the real estate market, with the last five years being especially noteworthy, he said.

“In 2023, the statewide average increase in property values was 30%. Here, in the northeast part of the state, it was 34%,” he explained. “It’s something that goes across the state, across Ohio, across the country. The whole nation is dealing with this.”

While multiple pieces of legislation have recently been introduced regarding property tax relief, none have gone anywhere, Keith said.

A joint committee on property tax review and reform was established, but ultimately “did nothing,” leaving the CAAO to take matters into their own hands, he added.

CAAO is pushing to expand the homestead exemption program, eliminate the non-business credit and expand owner-occupancy credit, limit the growth and revenue received by school districts due to appraisal changes and create a “menu” of targeted relief, he said.

Homestead Exemption

The homestead exemption allows senior citizens living in their home to shield a part of their home from taxation, resulting in a credit on their real estate tax bill, Lake County Auditor Chris Galloway explained.

As costs in the real estate market and property valuations have increased, the value of that credit has reduced, he said.

“Seniors are getting hammered from both ends,” he said. “Their value in their taxes are going up and at the same time, their credit for their homestead is going down,”

In 2012, homestead exemption was tied to income in order to balance the state budget, Galloway said.

Prior to 2012, someone only had to be 65 to qualify. After the change, someone had to make $40,000 or below in income, he said.

“That took out a large segment of folks who immediately did not become eligible for the credit,” Galloway said.

The association is pushing to increase the amount credit shields on property value or increasing the income qualifier, he said.

These proposed changes are of significant interest to the Geauga County Department on Aging, Director Jessica Boalt said June 16.

People 60 and older make up 30.3% of Geauga County’s population, Boalt said, adding as rising property taxes disproportionately impact seniors on fixed income, the effect is substantial.

“This would be a crucial step toward supporting aging in place — helping seniors remain in their homes and communities, which is vital for their health, safety and quality of life,” she said. “These changes would modernize the program to reflect current economic realities, including inflation and rising property values.”

The 20-Mill Floor

Ohio’s General Assembly created the 20-mill floor in the 1970s to give public schools a minimum level of funding, Union County Auditor Andrea Weaver explained.

“The way it works is it basically adjusts those general fund levies, which is inside millage that they are assigned,” she said. “Part of the calculation includes inside millage and then the other, operating levies that district may have.”

Levy rates are readjusted every year as property values constantly change, she said.

“If that change in rate drops down below that minimum 20-mills, then the department of taxation kicks each one of those other levies … up just a smidge so … they (add) back up to just 20,” Weaver said. “That makes sure that district gets 20 mills, even if the value increases that district experienced forced those fixed-rate levies to be readjusted according to Ohio law.”

Current law allows for “an almost one-for-one tax increase if a school is already at that floor,” she said, adding the auditor’s association suggests a ceiling.

“You could reduce that increase to the point of inflation. (If) you’ve got a 34% increase in value in your school district as result of value change, instead of that school seeing that large of an increase, it would be adjusted to only seeing whatever their current inflation rate is,” Weaver said.

This would still allow for growth in revenue, but not an egregious amount, she said.

Geauga County school districts have varied opinions about the proposal.

Chardon Schools would not be impacted by the proposal at this time, as it is not at the 20-mill floor, Superintendent Mike Hanlon and Treasurer Deb Armbruster said.

Were the district’s effective millage rate dropped to the 20-mill floor, there would be an impact through the elimination of revenue, but that impact is not possible to estimate, they said.

The duo believes property tax adjustments are necessary and must be done incrementally for schools to adapt to revenue reductions.

Berkshire Schools, however, is at the 20-mill floor, so it would be impacted.

“A policy change that caps revenue growth to inflation would severely limit our district’s ability to respond to cost increases, unexpected needs or state funding instability,” said Superintendent John Stoddard. “The proposed cap would restrict local flexibility, shifting more burden back onto the state or ultimately forcing reductions in services to students.”

Stoddard encouraged collaboration with districts, rather than applying a change to them.

“If the legislature is concerned about local tax burdens, the solution should include a broader discussion about the equity and adequacy of Ohio’s school funding model overall,” he said. “Targeting the limited financial tools available to districts like ours, which are already at the floor, risks undermining the very local control and accountability that Ohio law is supposed to uphold.”

Owner-Occupancy Credit and Targeted Relief

The owner-occupancy credit is a 2.5% credit every owner-occupancy home receives that has not been adjusted since its establishment in the 1970s, Keith explained.

“That should have been adjusted long ago, should have been tied to inflation long ago,” he said. “That’s one thing we think is a no-brainer, to re-establish the 10% credit on owner-occupancy property.”

These are things that would make a difference to most homeowners and could provide immediate relief, Keith said.

Auditors are seeking targeted relief because what works best in one community may not serve another, he said.

“Some of our auditors would favor doing income tax credit, or tax deferrals,” he said. “What they want is to have the legislature give us the authority or the tools to do those things that work in our own communities.”