Ohio families feel financial pressure as tax debate grows

COLUMBUS, Ohio (WSYX) — Families across Ohio say rising property taxes, inflation, and the increasing cost of living are putting more strain on their budgets. Households continue to question how much taxpayers can afford.

The issue is becoming a growing political debate statewide, as discussions continue over possible tax reforms and how Ohio communities fund schools, police, fire departments, and other public services.

Ohio homeowners say property taxes have climbed significantly over the past several years. A recent poll conducted by ABC 6 shows the majority of our viewers’ property taxes have increase $500-$1,500 annually.

When we asked whether their incomes had kept pace with those higher costs, the majority answered their income has increased, but it is not enough to keep up with every day costs.

That frustration is fueling broader conversations about affordability and whether Ohio’s current tax system is sustainable for working families and retirees.

Several Central Ohio school districts say failed levies could lead to reductions in programs and services. After voters rejected a recent tax issue in Pickerington, Superintendent Charles Smialek warned the district may eventually need to cut transportation, extracurricular activities, administrative rolls, and classroom resources.

“If we fail in November, it starts to cut into our classroom,” Smialek said in an interview with ABC 6 earlier this month.

Many districts throughout Ohio rely heavily on local property tax revenue to operate. Republican gubernatorial candidate Vivek Ramaswamy is pushing a plan to reduce property taxes and eventually phase out Ohio’s state income tax over a 10-year plan.

But economists say lowering or eliminating those taxes would likely require the state to either raise other taxes or reduce spending.

Jared Pincin, Associate Professor of Economics at Cedarville University, said states without income taxes often depend more heavily on sales taxes and fees.

“Voters should be asking politicians what the specifics are with their plans,” Pincin said. “That’s the information politicians should be pressed on.”

He added that while tax changes can happen gradually, there is still a trade-off if the state wants to maintain current levels of funding for public services.

“If you’re going to eliminate the income tax and you want to keep the revenue the same, you’ll have to increase taxes or cut spending to offset that,” Pincin said. “Assessed property values have increased and even if the rate doesn’t change, that has allowed the tax bill itself to rise.”

Pincin recommended taking advantage of retirement accounts and relocating to a more affordable town to ease taxes. “Are you maxing out or are you putting away savings in accounts that are pre-taxed?” he added.

Governor DeWine warned sales tax rates could skyrocket to 20% if property and income taxes were abolished.

DeWine added that Ohio lawmakers may also have to consider hiking other taxes, such as the state’s income taxes, to plug the roughly $24 billion budget hole that would result with the elimination of property taxes.

A grassroots group called Citizens for Property Tax Reform is backing a constitutional amendment that would eliminate property taxes completely.

But another coalition, Ohioans to Protect Public Services, warns eliminating property taxes without a replacement funding plan could severely impact schools, police and fire departments, libraries, senior centers, and disability services.

Ohioans to Protect Public Services says property taxes make up nearly two-thirds of all local funding in Ohio. The group says “eliminating them altogether with no plan for what comes next is just reckless.”

Ohio’s Office of Budget and Management warned removing local property taxes without replacing the lost revenue could effectively “defund” many local government services statewide.

“A constitutional amendment to abolish local property taxes, with no plan to replace the lost revenues, would quite literally “defund” the police, fire departments, schools, libraries, senior centers, and other local government services in our communities statewide,” the statement said.

As the debate continues, many Ohio families say they are looking for relief and want to keep tax rates down.