Latest news with #propertytax
Yahoo
6 days ago
- Business
- Yahoo
What does the Ohio House property tax override mean?
COLUMBUS, Ohio (WCMH) — The Ohio House pushed for property tax relief this week, but legislators disagree on whether removing some property tax authority will help Ohioans' pocketbooks. Gov. Mike DeWine signed Ohio's 2026-2027 budget into law on June 30, but vetoed 67 provisions within the several thousand page document. On Monday, the Ohio House held a rare out-of-season session to override one of the budget vetoes in an attempt to provide property tax relief. During the vote, politicians on both sides of the aisle said Ohio's tax system is too complex to be productive, so NBC4 is breaking this issue down. Olentangy coach resigns amid investigation into inappropriate text messages What happened? On Monday, 89 of the House's 99 members met and voted to override DeWine's veto on school district property tax levy restrictions. The move needed 60 votes, and it successfully passed 61-28. The House originally planned to vote on three overrides, but leaders said they did not think they had the votes due to absences. See previous coverage in the video player above. It is now up to the Senate to decide if they will also vote on the override, but they have not yet announced plans to vote. The override is not official unless 20 of Ohio's 33 Senators concur. What could change? If the Senate concurs the veto override, Ohio would change what type of property tax levies schools and other services could place on the ballot. The changes stop schools and political subdivisions, like fire departments or libraries, from introducing replacement and emergency levies. This change also stops school districts from asking for operating levies if it has too much money left over in their general funds. Replacement levies occur when a levy is expiring, and can either keep the same levy in place or, more commonly, replace it with a higher tax rate. Emergency levies are used when funding is crucial to keep operating, and they expire after a set number of years. These are all operating levies, meaning they are used to pay for daily necessities like supplies, utilities and salaries. These funds typically cannot be used for permanent improvement projects, like building a new high school or fire department. House members in favor of the changes said words like 'emergency' and 'replacement' can influence people to vote for property tax increases they may not want. They hope removing these levy options will promote transparency in levy requests. Bobcats, bald eagles and bears, oh my! Species seeing population growth in Ohio What does this mean for schools? This would limit how public school districts are allowed to ask for public money by removing several levy options. Schools would still be allowed to request other property tax levies. The Ohio Education Association (OAE) said these levies are crucial for school districts' long-term financial stability. Replacement levies are frequently used to help districts keep up with inflation, so having to always seek new levies brings a more complicated request to taxpayers. According to the OAE, this change could force Ohio schools to increase class sizes and cut programming. Schools will also no longer be allowed to ask for certain levies if they carry over more than 100% of their expenditures in their general funds from school year to school year. School districts say this is an important protection for long-term financial planning, as they cannot ask for more money even if they say they need more. House Republicans who voted in favor of the override said it will encourage districts to be more fiscally responsible. Proponents of the change say this is not taking money from schools, as voters will still have the opportunity to approve levies. Opponents, like Rep. Ismail Mohamed (D-Columbus), said the veto would limit the choices Ohioans have at the ballot. What does this mean for local services? Although the change affects school districts immensely, it also affects political subdivisions like local governments, fire departments, libraries and parks. All of these services rely on property taxes, and many of them use replacement levies to stay afloat. For instance, Franklin Township had two replacement levies fail in the past year, leading them to have to close one of their two fire stations. Legislators and advocates who disagree with the possible property tax change say examples like this prove Ohioans already have control over whether or not to pass a levy. Like local schools, this could make it more difficult to pass levies, or just complicate how these services are asking for funding. House Democrats say these services will have to choose between more frequent levy requests or making budget cuts. House Republicans largely say this will protect taxpayers from overreach and encourage local services to be better stewards of tax dollars. Three months later, still no updates in OSU investigation of hidden cameras in dorm bathroom What does this mean for my taxes? Even if the Senate concurs this veto override, this change does not guarantee a different property tax rate for Ohioans. The change reduces how many types of levies subdivisions can ask for, but fewer levies may not correlate with fewer levy requests. Proponents say this will help provide transparency at the ballot and prevent tax hikes that voters may not expect. The change would go into effect Jan. 1, 2026, so it would not change tax laws until after the November election. Proponents say this is a proactive change to help future overreach. Opponents say it is unlikely this will provide meaningful property tax relief because it does not address immediate pressures. They said it could even add financial pressure for taxpayers as local governments and schools try to find other revenue sources. Ohio leaders say property tax reform is coming, regardless of whether the override stands. Gov. Mike DeWine has tasked a property tax reform work group with analyzing concerns and generating solutions by Sept. 30. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword
Yahoo
7 days ago
- Business
- Yahoo
How much would Westerville levy cost taxpayers?
WESTERVILLE, Ohio (WCMH) — As lawmakers at the Ohio Statehouse talk about property tax relief, Westerville City Schools is putting an earned income tax levy on the November ballot. Most recent school levies in central Ohio are property tax levies, but some said an earned income tax levy could be more appealing to voters, especially those on a fixed income. Westerville City Schools voters will see a 0.75 percent earned income tax levy in November, which means people who are retired, on social security or unemployed will not be taxed. Ohio House overrides one budget veto, hoping to provide property tax relief 'There's a potential future ballot issue that would eliminate property taxes in the state of Ohio,' Westerville City Schools Treasurer Nicole Marshall said. 'We've heard a lot of lawmakers, you know, they're focused on property tax reform.' With property taxes so high, Marshall said she thought the best thing for the district was an income tax levy. 'We were very much mindful of we have senior citizens who are worried about being able to stay in their homes, that are retired, and that we do think that this would be a relief to them,' Marshall said. Bill Phillis, a consultant for the Ohio Coalition for Equity and Adequacy of School Funding, noted that with many local property tax levies failing in recent years, it makes sense for districts to try a different approach, especially in communities with many residents on fixed incomes. 'A lot of the older folks who, you know, don't have as much income as they did in previous years, that's kind of a good deal for them,' Phillis said. 'For the, you know, high salaried folks, it's not such a good deal.' Olentangy coach resigns amid investigation into inappropriate text messages With the most recent state budget, Phillis said the burden of paying for public education is falling more on local taxpayers. He said he could see more districts following in Westerville's footsteps. 'If they don't solve that and keep pushing it back to the local level, then I assume that there might be some more interest in the income tax,' Phillis said. For residents earning $60,000 a year, the levy, if approved, would cost $450 annually, Marshall said. To calculate how much the levy would cost you annually, multiply your annual salary by .0075. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword
CBS News
22-07-2025
- Business
- CBS News
DeSantis announces audits of local government spending, starting with Broward
Cities, counties and law enforcement agencies across Florida will now undergo state audits, with Broward being up first. That's according to Governor Ron DeSantis who made the announcement Tuesday morning in Fort Lauderdale with the state's newly sworn-in Chief Financial Officer Blaise Ingoglia. DeSantis said their spending just doesn't add up. "Their county government has increased property tax burdens by the tune of $450 million, in addition to ad valorem collections, that's an increase of close to 50% just since 2020, but yet the population of Broward has barely grown at all, less than 5%," he said. The governor said the county is spending as if the money belongs to someone else. "I think it was, was it $800,000 for the Rose Bowl? They did a float in the Rose Bowl. The county administrator here makes almost half a million dollars a year. So there's a lot of things that really deserve scrutiny," he said. Ingoglia, who was sworn-in as CFO on Monday, said they're going to begin auditing municipalities and agencies on July 31st with a team on the ground and using artificial intelligence. If the municipalities and agencies don't comply, DeSantis said not only will the state withhold funding, there will also be fines. "For example, if we send a letter to a city and say, you know, provide us information on these 100 things, and they don't do it, then each individual item would be a daily fine of $1,000, so that'd be 100,000 a day," he said. The governor said they are starting with areas where they've gotten a lot of complaints and little compliance. So where does Miami-Dade stand? "I don't think they fully got on board, but we do have some of the commissioners that are helping on that. So I would say that they've been better than some, but not good enough. So, I think it's very possible that you'll see an announcement on Miami-Dade within the next couple weeks," DeSantis said. At Ingoglia's swearing-in ceremony, the governor announced that a top priority of the CFO would be audits of local government spending. The focus on such spending comes amid a push by DeSantis to ask voters in 2026 to reduce or eliminate taxes on homesteaded properties. Local governments rely heavily on property taxes. In addition to local government audits, Ingoglia said he will focus on ensuring insurance companies follow requirements. "If they're slowing stuff, we're going to have conversations with them," Ingoglia said. "I'm not going to sit back. I'm not going to allow anyone to game the system, whether it is on one side or the other side, whether it is trial attorneys gaming the system or insurance companies gaming the system." Critics have accused some property insurers of not properly paying claims and have raised questions about carriers sending money to shareholders and affiliated companies while seeking rate increases. In his remarks during Monday's ceremony, Ingoglia called the appointment to the Cabinet post an "honor that has been bestowed upon me."
Forbes
22-07-2025
- Business
- Forbes
Texas Lawmakers Aim To Address Unfinished Business In Special Session
AUSTIN, TEXAS - APRIL 23: Gov. Greg Abbott speaks during a bill signing in the State Capitol on ... More April 23, 2025 in Austin, Texas. Senate Bill 14 introduces and establishes a new Texas Regulatory Efficiency Office which seeks to create better practices within state agencies and terminate unnecessary regulations. (Photo by) Following the early June conclusion of the Texas Legislature's regular session, one that was marked by the enactment of a long sought conservative goal, the state's first school choice program, Governor Greg Abbott (R-Texas) has called a special session starting this week to address unfinished business. In his proclamation calling legislators back to Austin, Governor Abbott laid out a special session agenda that is likely to generate spirited debate, particularly over proposed reforms that could serve as national models for reining in government spending and limiting the rise in property tax burdens. Nation's First Taxpayer-Funded Lobbying Ban In approving Senate Bill 19 during the regular session this spring, the Texas Senate, as it has done multiple times in previous sessions, passed legislation that would prohibit local government officials from hiring contract lobbyists. After the Senate transmitted SB 19 to the House, however, the bill was referred to the House State Affairs Committee, where it subsequently never received a hearing before the end of the regular session. Though SB 19 did not receive consideration in the House during the regular session, Governor Abbott added the proposal to the special session agenda, presenting lawmakers with another opportunity to get this reform to the Governor's desk before the next regular session in 2027. Not only does SB 19 have the votes to pass out of the Senate and backing from the Governor, Speaker Dustin Burrows (R) has also expressed his support. Senator Mayes Middleton (R-Galveston) reintroduced his proposal to end taxpayer-funded lobbying for consideration during the special session as Senate Bill 12. Senator Middleton and other supporters of SB 12 point out that taxpayer-funded lobbyists are frequently the top opponents of conservative reforms that would reduce property tax burdens, limit increases in property tax bills, and restrict the growth in government spending. In 2023 alone, local government officials across Texas spent nearly $100 million on contract lobbyists. Senator Middleton explains that the impetus for this proposed reform is not primarily about the amount of taxpayer dollars being spent on lobbyists, but the fact that local government officials frequently hire contract lobbyists to advocate against taxpayer interests. 'The practice of taxpayer-funded lobbying violates the principles of constitutional order and limited government,' noted the Texas Public Policy Foundation's James Quintero and John Bonura in a report published earlier this year. 'Local governments that spend tax dollars to hire lobbyists oftentimes do so for the purpose of securing higher taxes, more spending, and greater regulatory authority.' Local government officials and the contract lobbyists they hire with taxpayer dollars are the most vocal opponents of SB 12. Many legislators, including Republican legislators, are loathe to upset them if it can be avoided. Speaker Burrows, however, has already demonstrated he does not shy away from disagreements with local officials in the name of advancing conservative reforms that he thinks are needed. In 2023, for example, Speaker Burrows championed legislation that bars local governments from imposing new regulations on an industry or activity that is in a field already regulated by state government. That proposal, referred to by opponents and supporters alike as the 'Death Star' bill, introduced the concept of 'field preemption.' While the implementation of Speaker Burrows' field preemption bill has been held up in court since Governor Abbott signed it into law in 2023, Texas's Third District Court of Appeals issued a ruling last week that will allow it to at last take effect. 'The Death Star is now fully operational,' Speaker Burrows posted to X shortly after that ruling came down on July 18. Similar to the Death Star bill, SB 12 will need to overcome robust opposition from local government officials, but lawmakers appear committed to getting this long sought conservative policy goal to the Governor's desk this summer. 'The special session will be a total failure if the Texas legislature fails to ban taxpayer-funded lobbying,' Representative Briscoe Caine (R) posted to X on the first day of the special session. Many Believe Time Has Come For The State To Limit The Growth Of Local Spending Barring local officials from hiring contract lobbyists isn't the only special session agenda item that is sure to draw the ire of local politicians. So too will Governor Abbott's call for lawmakers to consider legislation 'reducing the property tax burden on Texans and legislation imposing spending limits on entities authorized to impose property taxes.' While Texas is one of eight no-income-tax states and boasts a lower overall tax burden than most states, it does have one of the nation's highest average property tax burden. According to the non-partisan Tax Foundation, Texans face the nation's sixth highest average property tax burden. Texas already has a law in place preventing state spending from rising faster than the rate of population growth and inflation, but localities do not face a similar restriction. Governor Abbott and many in the Texas Legislature believe that greater restrictions on local spending growth are needed to keep rising property tax burdens in check. The state does have a property taxpayer safeguard on the books referred to as 'the rollback rate.' The Texas rollback rate was reduced in 2019 to require that local governments receive voter approval if they wish to increase spending faster than 3.5% annually (2.5% for school districts). Because of the many exemptions and exclusions in Texas's rollback rate, local government officials across Texas have been able to grow their budgets and property tax burdens much faster than 3.5% annually despite the 2019 rollback rate change. Though the rollback rate reduction of 2019 has saved taxpayer billions of dollars in property tax payments over the past half decade relative to what would've been paid under the higher rollback rate, it has proven to be an insufficient taxpayer safeguard. If Texas lawmakers were to use the special session to remove the exclusions that prevent the rollback rate from being the strong spending cap that it has the potential to be, they could prevent unsustainable increases in property tax burdens moving forward. 'Reducing the rollback rate from 8% to 2.5% for school districts and 3.5% for most other local governments, along with requiring an automatic election to exceed those caps, was a step in the right direction,' said Vance Ginn, a Texas-based economist who previously served as chief economist at the White House Office of Management and the Texas Public Policy Foundation. 'However, the 2019 rollback rate changes fell short in a few key ways, particularly its exclusion of new property, property located n natural disaster areas, and other jurisdictions significantly weakened the protection the rollback rate provides to Texas taxpayers. Despite the improvements made to the rollback rate in 2019, property taxes were hiked 13.7% by special purpose districts, 11.5% by counties, and 9.5% by cities in 2023, which reduced the property tax relief from the state that year.' 'The lesson learned is that the rollback rate should be 0% for all property and all jurisdictions,' Ginn added, noting that 'a local spending limit and a 0% rollback rate would help rein in the excessive burden of local governments.' In addition to enacting the state's first school choice program, Governor Abbott and state lawmakers passed other reforms that were praised by conservatives. The research and development tax credit that businesses can apply against their state gross receipts tax liability was scheduled to expire at the end of 2025. Not only did Governor Abbott and Texas lawmakers prevent that tax break from expiring, they passed legislation to make the R&D tax credit more generous and permanent. 'For every $1 in R&D incentive, Texas gains $12.47 in Gross State Product over 20 years,' Senator Paul Bettencourt, noted in a statement posted to X shortly after the Texas Senate passed the Senate Bill 2206, bill to boost and permanently extend the R&D tax credit. 'This bill creates 6,662 new jobs annually, $445M in labor income, and $748M in GSP growth every year. SB 2206 ensures Texas remains a national leader in research, innovation, and job creation — making sure our economy keeps pace with the demands of the 21st-century.' The strengthening and permanent extension of the state's R&D tax credit isn't the only form of tax relief that employers received during the regular session. With the enactment of House Bill 9 in June, Texas lawmakers and Governor Abbott advanced business personal property tax relief through an increase in the inventory tax exemption from $2,500 to $125,000. This tax cut, which is subject to voter approval, is projected to save Texas employers $400 million annually. 'Cutting the inventory tax has long been a priority of our members here in Texas,' NFIB State Director Jeff Burdett said following the signing of HB 9. 'By increasing the exemption, Main Street employers will have more of their hard-earned money to expand their operations, invest in their employees, and contribute to their communities.' Texas voters will also get the chance to vote on a constitutional amendment that would prohibit state taxation of capital gains thanks to a constitutional amendment that Governor Abbott and state legislators referred to the ballot during the regular session. Texas already has a constitutional prohibition against taxing income, which was approved by voters in 2019. The new constitutional amendment specifically barring taxation of capital gains, if approved by voters, would make clear that a capital gains tax is also off limits per the Texas constitution. After a regular session in which Governor Abbott and state lawmakers accomplished significant and historic reforms, they return to Austin this week to tend to matters that were not addressed before time ran out on the regular session. Some think that a second special session could even be in the offing, depending on how this one goes. While Governor Abbott and Texas legislators were catching up with the rest of the country by providing school choice, the special session presents them with an opportunity to pass reforms that could serve as national models that other states seek to adopt, reestablishing Texas as a state on the leading edge of conservative governance and policy innovation.
Telegraph
22-07-2025
- Business
- Telegraph
A wealth tax looks dead in the water. Reeves has other options
Finally, the proponents of a wealth tax have so far focused on lazy, big-picture claims that overlook the details of how such a tax would work. What assets would it be levied on? Would just UK assets or worldwide ones be in scope? How would it be collected? Could HMRC even do it? The Treasury has done a lot of thinking about how to tax wealth more and is well aware that to be effective, any tax increase on the very rich has to be almost impossible to avoid. I suspect once they got into the details, they would swiftly work out that this type of levy would be easily dodged. That's the good news. The bad news is that the Treasury certainly has views on how and why tax on wealth should be increased. Work will be underway to give the Chancellor a menu of options that mean she can dismiss this specific proposal as unworkable while pleasing backbenchers with an alternative tax raid on wealth. When I was at the Treasury, there were frequent mutterings from officials about the unfairness of taxing labour more than capital, and a lot of work looking at how to tackle intergenerational issues through inheritance tax and property taxes. I suspect this will be dusted down and presented as the answer to the Chancellor's fiscal and political problems. What might a wealth tax raid that isn't a wealth tax look like? The big area of focus will be property. Officials are very taken with the premise that recurring taxes on immovable property are the best way to increase the amount the wealthiest pay. So, if they want to work within the current system, we could see changes to council tax. Despite being delayed a bit, the Labour Government in Wales is committed to a council tax revaluation that Westminster could replicate. This would be done under the guise of fairness and would result in more expensive homes paying higher council tax. Alternatively, the Government could opt to add a new council tax band under existing valuations. A mansion tax like this might raise a few billion. More radical would be reform of the Primary Residence Relief (PRR) that exempts family homes from capital gains tax. This relief costs nearly £40bn a year, so even restricting it in a small way, such as levying it only on homes worth over £2m, might raise a few billion. PRR appeared on a list of options in the run-up to the Autumn Statement of 2022, but Jeremy Hunt, the then chancellor, had no intention of going near such an explosive policy. His successor may well view the idea differently. I would be surprised to see anything as complicated as this, but initial work was started last year on replacing all of our current property taxes (council tax, stamp duty and capital gains tax on property) with a new annual property levy. There has been no pitch rolling for this sort of approach, so I suspect moves will be limited to reforming council tax or PRR, plus some tinkering with stamp duty. More straightforward would be simple increases to capital gains, inheritance and dividend taxes. All of which could be dressed up as taxing the wealthy and could raise an extra few billion in combination. Increasing dividend tax and capital gains tax further towards income tax rates would certainly appeal to the Treasury's instincts that capital should not be taxed much less than labour. All of which means we may well see a specific new wealth tax ruled out more formally. But that does not mean a suite of wealth taxes isn't on the cards for the autumn Budget.
