A push to eliminate property taxes in Ohio is still underway, but Gov. Mike DeWine warns it could have serious financial consequences.
DeWine told reporters in Chester Township on Thursday that the change could force the state sales tax to jump as high as 17% to 20%, calling it “absolutely devastating.”
“It would just be devastating to all kinds of local government, starting with schools, but also police and fire and children’s services and mental retardation levies,” DeWine said. “All of those would go away and we would be in a huge crisis in the state of Ohio. The sales tax would go up to 17, 18, 19, 20% in the state of Ohio on products that you buy, so it would just be absolutely devastating.”
He noted that property taxes fund essential local services, including schools, police, fire departments, and children’s programs, and eliminating them could create a fiscal crisis.
The tax elimination effort is being led by Ax OH Tax, which seeks to place a constitutional amendment on the ballot to remove all residential and commercial property taxes. Supporters must collect more than 400,000 valid signatures for it to appear on November’s ballot.
State budget officials warn the loss of property tax revenue — roughly $20 billion to $24 billion annually — could force major increases in other taxes. Experts say higher sales taxes could push Ohioans to shop in neighboring states, while critics question whether eliminating commercial property taxes would lower prices or simply boost corporate profits.
DeWine and other leaders are instead advocating targeted property tax relief that reduces costs without eliminating the tax entirely.
