07/01/2021
Legislative Update on State Budget Bill Signed June 30th
On the evening of Monday, June 28th, the House and Senate approved the Conference Committee Report on HB 110 (biennial budget) and forwarded the bill on to the Governor. At 2am this morning, the Governor exercised his veto authority on 14 items in the budget, then signed it into law effective today. We wanted to share with all of you some of the highlights in the budget that we’ve been following for the Legislative Committee:
- Removes provisions authorizing combined health districts to levy property tax with voter approval (the county treasurer would have been the fiscal agent for that levy)
- Eliminates the legislative Tax Expenditure Review Committee
- Instead of keeping Senate provisions requiring federally subsidized rental housing to be valued at market rate, creates a study committee to examine the valuation of that type of property
- Imposes a charge against real property or manufactured or mobile homes receiving the homestead exemption if the property owner or occupant failed to notify the county auditor that the owner or occupant no longer qualified for the exemption. Specifies the amount of the charge equals the tax savings, plus interest, for each tax year that the owner or occupant did not qualify for the exemption.
- Modifies the process by which a property owner may appeal a recoupment charge for failing to notify the auditor that they no longer qualify for a tax exemption by requiring the owner to file for an exemption with the Tax Commissioner instead of an administrative complaint with the BOR
- Appropriates $150 million for demolition and site revitalization and $350 million for brownfield remediation total
- Removes provisions on holding an unclaimed funds holder harmless
- Retains Senate language allowing specific property tax exemptions (arts garage and property in Montgomery County, fraternal organizations. Removes House language on Lucas County urban agricultural area property tax exemption)
The General Assembly also finalized a 3% tax cut, eliminated the state’s highest tax bracket as well as increasing the income minimum at which tax brackets begin. The Legislature also appropriated $250 million for broadband funding and went with the Cupp-Patterson Fair School Funding Plan in terms of school funding (funded just through the biennium in this budget) with a few tweaks.
Several Treasurers have reached out to us for more details on the $150 million in demolition and site revitalization funds. The budget bill specifically directs these funds to each county for administration, but it is not clear if counties with Land Banks will directly receive these funds. We reached out to Jim Rokakis and Gus Frangos (Ohio Land Bank Association) and they informed us that they are currently working with the state and the CCAO on developing guidelines for how these funds will be disbursed. They will be working diligently with these groups to develop these guidelines ASAP and will share them, and any updated information, with us as soon as it is available.