West Hamilton News

Senator Louis W. Blessing, III from Colerain Township has voiced his concerns over a proposed ballot initiative aimed at eliminating property taxes in Ohio. In his statement, Blessing warns against the potential negative impacts of such a measure.

"With property taxes at the center of Ohio's political debate, and a looming ballot initiative as part of the backdrop, lost in the discussion is the philosophy behind property taxation," he stated. Blessing compared the proposal to "panic in the face of a grease fire, and reaching for the water."

He highlighted that relying on income or sales tax increases to compensate for lost revenue could have adverse effects. "Implicit in this assumption is that property taxation has no benefit other than raising revenue," he said, pointing out that different forms of taxation can influence behavior positively or negatively.

Blessing argued that modest property taxation might actually enhance home affordability. He cited an article from the Minneapolis Federal Reserve supporting this view: "Would it surprise you that modest property taxation, compared to none at all, actually increases home affordability?"

According to Blessing, ending or drastically cutting property taxes would lead to increased expenses for most Ohio citizens due to higher housing costs and regressive sales taxes. He mentioned that "local governments and schools are spending too much" might be a common criticism but emphasized that local leaders across party lines oppose drastic cuts.

The senator noted that high valuations resulting from asset inflation during the pandemic have contributed to rising property taxes. Cutting these taxes significantly would ignore broader inflationary pressures on service costs.

Blessing identified several groups likely to suffer if property taxation were abolished: lower-income families, schools losing revenue, local governments struggling financially, pensions facing challenges with cost-of-living adjustments (COLAs), public safety services underfunded, seniors burdened by regressive sales taxes despite potential home value increases, businesses encountering higher costs, and disruptions in school funding formulas.

Conversely, those who own substantial real estate holdings would benefit greatly from eliminating property taxes. "The biggest winners would be the largest landlords and wealthiest citizens," he noted.

He warned about land hoarding without property taxation as a deterrent: "We obviously can't produce more land... investors can buy up land and sit on it indefinitely tax-free."

While acknowledging criticism toward legislative inaction on this issue, Blessing urged voters not to support ending property taxation through drastic measures. Instead, he recommended exploring compromise solutions like those suggested by Warren County’s auditor Matt Nolan and reviewing Senate Bill 215 regarding homestead exemptions.

"We can and should do something," Blessing concluded but cautioned against sweeping changes mandated at state levels which could exacerbate existing problems rather than solve them effectively with targeted relief efforts funded by state resources instead of local mandates alone.