CLEVELAND, Ohio — A bipartisan group of Ohio lawmakers has introduced legislation aimed at banning the sale of delinquent property tax liens to private investors, a practice critics argue disproportionately affects low-income and minority communities, according to cleveland.com. The move comes just days after Cuyahoga County announced plans to sell up to $40 million in unpaid property taxes to a private collection company.
The bill, introduced by Republican Representative David Thomas of Ashtabula County and Democratic Representative Daniel Troy of Willoughby Hills, seeks to prohibit counties from selling tax liens to private entities. Proponents of the legislation argue that such sales can lead to inflated interest rates and aggressive collection tactics, often resulting in the loss of homes for vulnerable residents.
The timing of the bill’s introduction has intensified the debate over tax lien sales. Cuyahoga County’s plan to sell delinquent tax liens has drawn criticism from housing advocates who contend that the practice exacerbates housing instability in already struggling neighborhoods. The county’s fiscal office maintains that the sale is necessary to recoup unpaid taxes and support essential services.
As the legislation moves through the General Assembly, stakeholders on both sides of the issue are closely monitoring developments. If enacted, the ban would represent a significant shift in how Ohio counties handle delinquent property taxes and could set a precedent for other states grappling with similar concerns.
