The past century has seen two roughly 10-year periods of loud taxpayer grumbling about property tax law.
During the first wave of grumbling, from 1925-1935, an initiative petition to the Ohio Constitution established a one percent limit to unvoted property taxes based on true value. Today, that is referred to as the 10-mill limitation. That wave of property tax law changes spanned the Roaring Twenties through the early years of the Great Depression. Reforms included establishment of the six-year reappraisal cycle in 1925, a constitution amendment in 1931 to establish a 15-mill limitation, the 10-mill limitation in 1933 and the first sales tax enacted to help fund the first School Foundation Program in 1935.
During the second wave of grumbling, from 1970-1980, turmoil gripped the nation. This wave of property tax law changes spanned the latter part of the Vietnam War through the Stagflation era. It was a time of high inflation, fuel price spikes and long lines to buy gasoline. There were rapid changes in social customs. Reforms included establishment of the first state individual income tax in 1971 as well as the first iteration of property tax homestead and rollback exemptions, the enactment of House Bill 920 to limit inflationary increases in property tax payments in 1976, the establishment of the current 20-mill floor for school tax levies in 1977, and the establishment of the two classes of real property through constitutional amendment in 1980.
Today, a third wave of grumbling about property taxes is well underway. From budget commission actions to stop collections to legislative proposals to change all manner of rules governing property taxes, the desire to respond to today’s grumbles is real. At this writing, more than a dozen bills have been introduced at the Statehouse to change property tax laws. Petitioners are circulating a proposal to amend the Ohio Constitution to ban property taxation. Legislators are seeking ways to respond.
Ohio has levied property taxes from the day it achieved statehood in 1803. In fact, until 1968, various statewide property taxes were levied. So, grumbling about property taxes in Ohio is nothing new. Major changes to property tax laws have occurred in roughly two 10-year periods in the past Century. It has been nearly 50 years since the last major batch of changes. The historical calendar suggests the time for change may be here.