Ohio has the ninth-lowest property taxes in the country, according to a new report.
The ranking is included in the Tax Foundation’s 2020 State Business Tax Climate Index. The property tax, including taxes on real and personal property, accounts for 16.6 percent of a state’s score in the index, and overall, Ohio ranked No. 38.
In 2014 and 2015, Ohio ranked No. 12 for property tax, and the state moved up to No. 7 in 2016. The Buckeye State ranked No. 8 in 2017 but dropped to No. 11 in 2018. The state moved up a notch to No. 9 for 2019, a position it retains for 2020.
Ohio is one of seven states that exempt all tangible personal property from taxation, according to the report.
Ohio outperformed many of its neighboring states, including West Virginia (No. 17), Pennsylvania (No. 21), Michigan (No. 24) and Kentucky (No. 36). However, Indiana bested Ohio, ranking No. 2 in the country.
Nationally, New Mexico topped the list, while Connecticut ranked at the bottom.
In December, the Ohio House passed House Bill 75, requiring local governments contesting the value of a parcel pass a resolution and notify the property owner. The bill drew support from real estate organizations and opposition from various schools throughout Ohio.
“This legislation ensures local governments use due diligence and are transparent before filing property valuation complaints,” state Rep. Derek Merrin, R-Monclova, said in a news release.
“Also, it ensures property owners have proper notice, so they have the ability to reach out to their elected representatives before a decision is made regarding their properties,” Merrin added. “Currently, they get notified after the complaint has been filed.”
Meanwhile, earlier this month, state Sen. Hearcel Craig, D-Columbus, told several news media outlets he wants the state to limit annual property tax increases to 3 percent and plans to introduce legislation early in 2020.
“We want the growth to occur, we want the communities to continue to have growth and renovation, but not at the expense of families that have lived there, that have put their roots there,” WCMH quoted Craig as saying.
Such a proposal has drawn support from U.S. Rep. Joyce Beatty, D-Ohio, and Franklin County Auditor Michael Stinziano. In his December newsletter, Stinziano said 34 states currently have in place a cap on property tax increases.
“The proposed bill would cap property tax increases for owner-occupied homes at 3 percent per year, preventing sudden surges in taxes,” Stinziano wrote. “The state would reimburse any taxes that were lost because of the cap, ensuring that local governments and schools don’t lose funding.”
Meanwhile, Ohio, like many other states, has seized the opportunity to levy additional taxes on marketplace facilitators and remote sellers.
Within a year of a June 2018 U.S. Supreme Court ruling, nearly every state had adopted new laws allowing them to levy taxes on remote sellers. Ohio has put in place remote seller and marketplace facilitator requirements effective Aug. 1.