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Taxing land values? Ohio Republican introduces constitutional amendment

Aerial roofs of the houses in Cleveland
ungvar
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Shutterstock.com
Aerial roofs of the houses in Cleveland

Ohio voters greenlit almost two-thirds of the local property tax levies on ballots across the state Tuesday, according to the Ohio School Boards Association.

Tuesday’s election results came even with bubbling frustration over high property taxes, what some have said is due to inaction by state lawmakers.

Under the Ohio Constitution, cities and towns and schools can tax properties, not land, meaning how much an owner shells out in taxes is determined by both their land and what is built on it. Sen. Bill Blessing (R-Colerain Twp.) is making the case to turn that on its head.

“Land value taxation goes back to Henry George,” Blessing said in an interview, referencing an American economist from the Progressive Era of the late 1800s and early 1900s. “Actually, it goes further back than that, but he’s the one who popularized it in the 19th century, and he believed very firmly that you could do everything with a land value tax.”

But allowing jurisdictions to do so would require an amendment to the Ohio Constitution, which is why he introduced Senate Joint Resolution 7 in October. SJR 7 has not yet been scheduled for a committee hearing.

“A lot of this fighting, outside of the school funding formula and stateside relief, all the local confusion, all of this garbage goes away with the way that I have SJR 7 drafted,” Blessing said.

If it was amended into the constitution, subdivisions—like elected school boards—would be the entity deciding whether to levy taxes on land value.

Rep. David Thomas (R-Jefferson) said in an interview he hasn’t looked closely at SJR 7, but he isn’t sold yet.

“You’re doing a whole big shift that will certainly benefit some, but then I think the negative consequences for many will be much greater,” Thomas said. “That helps your renters, that helps your actual homeowners, but if we’re shifting all that over to the land side, they’re still paying on their land, and the folks that own vacant land or farmland, are they going to be paying a tremendously higher amount?”

Three-fifths of both chambers of the legislature would need to back SJR 7 for it to make the ballot statewide.

Sarah Donaldson covers government, policy, politics and elections for the Ohio Public Radio and Television Statehouse News Bureau. Contact her at sdonaldson@statehousenews.org.