Township Administrator’s Corner

A statewide effort to place a constitutional amendment before voters to abolish property taxes in Ohio will likely not appear on the Nov. 3 ballot. The organization leading the initiative reported in April collecting approximately 305,000 petition signatures toward the roughly 415,000 valid signatures required to qualify for the November 2026 ballot.

However, even if supporters don’t reach the required threshold this year, the effort is far from over. Petition signatures remain valid for an indefinite period of time, allowing organizers to continue gathering additional signatures and potentially qualify the measure for a future ballot. As a result, the proposal to eliminate property taxes will likely remain a significant issue for Ohio communities in the future.

While proponents argue that property taxes place a growing burden on homeowners, the initiative raises serious concerns for local governments throughout Ohio. Most notably, the proposal provides no identified alternative funding mechanism to replace the billions of dollars generated annually through property taxation. In essence, it is an all-or-nothing proposition: eliminate property taxes without establishing a replacement revenue source.

For communities such as Bath Township, the consequences would be severe. Approximately 90% of township revenues are derived from property taxes. These funds support essential public services that residents rely upon every day, including police protection, fire and emergency medical services, road maintenance, zoning enforcement, parks and general government operations.

Without property tax revenue, local governments would face difficult choices involving significant service reductions, workforce impacts and the potential elimination of programs that contribute to public safety and quality of life. Counties, school districts, townships and other political subdivisions that depend heavily on property tax funding would face similar challenges.

Recognizing growing concerns regarding property taxation, the Ohio General Assembly adopted several legislative measures in December 2025 and forwarded five bills to Gov. Mike DeWine for approval. These measures were widely viewed as efforts to address taxpayer concerns while preserving local government funding. Several provisions focus on limiting school district tax collections and restricting certain revenue growth to inflationary levels. Other provisions will influence how local governments structure future levy requests.

One significant change affecting local governments is the elimination of replacement levies. Historically, replacement levies allowed voters to authorize a levy that could capture revenue associated with increased property values resulting from appreciation. Under Ohio law, when voters approve these levies, they are designed to generate a specific amount of revenue based on the total property valuation existing in the year the levy was originally approved. As property values increase over time, Ohio’s reduction factor is applied to maintain the levy’s original collection level. This means that while property values may rise, the levy’s effective tax rate is reduced so that revenue collections remain relatively constant.

In the past, replacement levies provided a mechanism for communities to reset that effective rate and collect revenue based upon current property values. With replacement levies no longer available, local governments must utilize different options to maintain adequate funding levels.

As a result, Bath Township is considering voter approval at the Nov. 3, 2026, election of a renewal of an existing 2-mill road and bridge levy along with a 1-mill increase. This approach reflects the new reality created by the elimination of replacement levies. Communities can no longer rely upon replacement levies to account for property value appreciation. Instead, they must renew existing levies and, when necessary, seek additional millage or new levies to address increasing costs and service demands.

An important distinction for taxpayers involves Ohio’s rollback subsidy. For non-commercial, owner-occupied properties, Ohio applies a rollback subsidy credit that covers 12.5% of a homeowner’s property taxes. Local governments are reimbursed through the state general fund for the property tax rollback subsidies. Renewal levies on owner-occupied residential properties continue to qualify for the state-funded 12.5% rollback subsidy. However, any additional millage associated with a levy increase or a newly approved levy no longer receives that subsidy.

As discussions surrounding property taxes continue across Ohio, it is important for residents to understand both the role property taxes play in funding essential local services and the significant financial challenges communities would face if that funding source were eliminated without a viable replacement. The outcome of these debates will have lasting implications for local governments, schools and taxpayers throughout the state.