If approved by voters, an Ohio constitutional amendment could have widereaching ramifications for local government agencies.

During an Ohio Township Association winter conference earlier this year. Gov. Mike DeWine warned officials if voters agreed to abolish property taxes, it would “create an immediate and severe crisis.”

Townships are expected especially to feel the brunt of the tax loss, according to state Rep. Monica Robb Blasdel, R-New Waterford. “Townships rely heavily on property taxes, because they have very limited authority to raise revenue in other ways,” she said, explaining that unlike cities or counties that townships cannot levy income taxes if property tax revenue disappear.

“If property taxes were eliminated without a replacement funding source, many townships would face immediate financial challenges, maintaining basic services,” Blasdel added.

Currently members from groups advocating for abolishing state property tax issue are collecting signatures to put an amendment abolishing property taxes on the November general election ballot. They are seeking a target of 620,000 signatures from at least 44 of Ohio’s 88 counties; however, they would only need a fraction of that.

If passed by voters, not only would it eliminate existing property taxes, but also prevent additional ones from being filed.

According to Heidi Fought, executive director of the Ohio Township Association, eliminating property taxes would mean deteriorating roads; reduced funding for police, fire and EMS; increased urban sprawl; unplanned development as well as loss of historic cemeteries and landmarks.

Ohio’s state income tax rate is 2.75 percent, which is the second lowest among states in the U.S. having an income tax.

DeWine speculated during his February remarks the state may need to increase its state income tax to somewhere between 11 and 15 percent and possibly as high as 15 to 18 percent on the current state sales tax — currently standing at 5.3 percent.

Kimberly Murnieks, director of Ohio’s Office of Budget and Management, explained in a DeWine memo shared at the conference, “(In 2026), property taxes, including real property and public utility personal property taxes, generate about $24 billion every year for local governments across the state.”

The state budget already pays a portion of homeowners’ local property tax bills through the Homestead Exemption for senior citizens and residents with disabilities as well as residential tax credits.

These state-funded programs reimburse local governments and schools more than $2 billion annually to property taxes the would otherwise be paid by Ohio residents, the memo notes.

“Replacing another $20 billion or more if local property tax revenue is abolished would be fiscally

impractical and economically harmful,” Murnieks said, adding, “To put this into perspective, that’s equal to the total revenue from Ohio’s state income and sales taxes combined.”

The bulk of local property tax revenues go to schools. Sixty percent, or around $63.6 million statewide, funds local schools, which could be forced to lay off thousands of personnel, increase class sizes and cut programming in the case of abolishment of property taxes.

The remaining funds are distributed to counties, 16 percent or $16.4 million; townships and municipalities, 7 percent; and special districts like libraries, parks and fire districts.

In the case of police, fire and EMS, repeal could lead to station closures, dramatically reduced staffing and slower emergency response times especially in smaller communities.

Ultimately those slower response times can impact lifesaving opportunities as well as ISO ratings, which can affect the cost of homeowner’s and renter’s insurance.

Services, like libraries, parks, health and human services as well as senior supports would face severe cuts or elimination, reducing the community quality of life due to a lack of stable funding and potentially increase the strain on hospitals and state systems.

The Ohio House already has championed multiple initiatives to delivery property tax relief to Ohioans, totaling more than $3 billion in savings, explained Robb Blasdel.

However, she said legislators are continuing to examine the potential impacts of eliminating property taxes altogether if it would occur.

“One concern frequently raised is that replacing property tax revenue entirely could shift more control to the state and reduce local decision making,” Robb Blasdel added.

There are communities in Columbiana County that are taking a proactive approach to exploring alternatives.

These kinds of proposals show that different communities may pursue different solutions depending on their local economy and needs.

For example, the village of Leetonia is proposing an income tax increase to cover the potentially lost property tax. “Local communities are best positioned to decide how to balance taxes and services, (but) voters ultimately have the final say,” she shared.

Robb Blasdel explained that the impact on special districts for police and fire protection or libraries might be impacted the most as they “rely heavily — and often entirely — on property taxes for funding.”

“This could potentially impact emergency response services and other critical local programs” as they typically do not have alternative revenue sources at their disposal, she added.

Local fire officials are especially fearful loss of property tax revenue could lead to loss of life caused by those loss of services.

The main advice Butler Township trustee Tom Sanor offered voters: “Study the facts and do your homework before having a knee-jerk reaction on Election Day.”

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Multiple initiatives that work to curb tax hikes and deliver property tax relief to Ohioans, totaling more than $3 billion in savings, and those were signed into law.

According to State Rep. Monica Robb Blasdel, R-New Waterford: “This is the most transformative package of property tax reforms Ohio has seen in at least a half a century,” she explained, delivering a “responsible approach to property tax relief by protecting homeowners while ensuring schools and local services remain supported. This legislation brings balance and long-term stability to Ohio’s property tax system.”

Here is a brief rundown of each piece of approved legislation, which is expected to take effect Thursday.

— INFLATION CAP ON SCHOOL DISTRICT PROPERTY TAXES: House Bill 186 will save Ohio property owners nearly $1.7 billion over the next years by establishing a new Inflation Cap Credit, preventing school district property taxes from exceeding the rate of inflation. Also approved were changes to the owner occupancy tax credit, which is expected to provide more than $800 million in relief to Ohio homeowners over the next four years; expansion of the owner occupancy tax credit; and phasing out of the nonbusiness credit except to agricultural property owners, all which is expected to bring property owners relief by January 2027.

— INSIDE MILLAGE INFLATION CAP: House Bill 334 will tie inside millage collections to the rate of inflation, requiring county budget commissions to adjust the rate of each inside millage levy so it doesn’t increase by more than the sum of the three previous years of inflation. “The net effect of this provision,” as Robb Blasdel explains, “totals between $621 million and $763 million in property tax relief over the next three years.” Ohians also will see relief through this cap in January 2027.

— A CHECK ON TAX HIKES: House Bill 129 implements a check on tax hikes by counting emergency, substitute, incremental growth, conversion levels and the property tax portion of combined levies towards the 20-mill floor, which will close loopholes and slow tax spikes. According to Robb-Blasdel, this measure will lift 237 districts off the 20-mill floor over the next four years.

This bill also introduced a new alternative levy option, which would allow school districts that have emergency or substitute levies instead to renew them as “fixed sum” levies, providing additional flexibilities for school districts.

— FLIP THE SCRIPT: House Bill 124 provides county auditors greater oversight over determining property tax sales information used for determining property valuations, Robb Blasdel explained.

— ALSO House Bill 309 will slash unnecessary collections by expanding county budget commission’s authority to modify levies and trim unnecessary high millage rates, she concluded.

Source: State Rep. Monica Robb Blasdel official legislative website.