Proposal Details
SJR 7 would amend the Ohio Constitution to allow taxing only the unimproved land value, excluding buildings and structures, effective January 1, 2027, if approved. Local governments could opt in without mandating it statewide, with exemptions for land under public buildings and churches, aiming to replace voter-approved levies up to 10 mills. Blessing argues this shifts revenue generation away from frequent levies, which Ohio relies on more than any other state.
Lawmaker’s Rationale
Blessing contends LVT removes penalties on development, as current property taxes rise with improvements, discouraging construction and housing supply. “Why are land value taxes superior? Quite simply, they don’t tax development,” he told a Senate committee. He predicts LVT could generate more aggregate revenue, lower individual bills, boost development, reduce housing costs, and promote efficient land use, such as favoring apartments over vacant lots.
Broader Context
Ohio’s property taxes have surged, with reassessments driving 32% value jumps in areas like Cuyahoga County and 18% delinquency in Mahoning County. Grassroots efforts seek full repeal via amendment, but the Office of Budget Management highlights risks to schools, police, and services without replacements. LVT offers local flexibility, potentially bypassing voter levies via majority council votes while maintaining accountability.
Potential Challenges
Critics worry LVT could burden farmland or vacant lot owners disproportionately while benefiting commercial developers, though Blessing counters it incentivizes productive use. Rep. David Thomas (R-Jefferson) expressed skepticism, noting shifts might harm some more than help. The resolution requires legislative supermajority before a voter referendum; no committee hearing is scheduled yet.