October 26, 2021
In the state of Ohio, officials review tax breaks every year. Now, some lawmakers in the state are considering legislation that could collect information across the state related to property tax exemption. Even though a lot of this information already exists, state legislators want to increase transparency related to incentives, such as property tax abatements, which have been a source of debate between county and city government officials during the past few years.
Many cities offer tax breaks to certain developers because they can’t increase the rate at which people and governments move to the area. This is a great incentive to convince businesses to build in their locations. On the other hand, county officials usually do not like property tax breaks because they end up footing the bill. Even though cities in Ohio rely on income tax for funding, counties rely on property tax dollars.
County Schools Might Be Suffering
One of the biggest reasons why some people are concerned about increasing property tax abatement in Ohio is that this could be hurting local schools. School funding is directly tied to property tax revenue. Therefore, when property taxes go down, schools may suffer as well. For example, some schools in Ohio, such as Short North in Columbus, might enjoy booming neighborhoods, but they might not have enough revenue to fund teachers, school supplies, and new technology. Therefore, government officials believe it is important to increase transparency related to property tax breaks.
Is an Alternation Coming in Abatement Policies?
There are a lot of people who believe the end goal of this situation is to change the way property tax abatement policies are structured. Even though that might be coming down the road, this does not necessarily mean that any programs are on the chopping block right now. The concern, instead, is focusing on scale. For example, thanks to property abatement, some derelict properties might be improved. At the same time, if property tax abatements increase too much, local schools may begin to suffer. Even though a vote has not yet happened, there are a lot of government officials who are spending time talking to their citizens, figuring out which way their constituents are leaning.
Looking to the Future of Property Tax Abatement in Ohio
There are a lot of local citizens who are looking for ways to attract better jobs to the area. One of the best ways to do that has been to use property tax abatement. That way, businesses might be able to use the money they save to hire a new employee. At the same time, a lot of parents are concerned about the quality of the education their children are getting. It might be a good idea to take a look at other ways to attract businesses to the local area. That way, counties still have the funding they need to give their students the education they deserve, keeping their citizens happy.