State representative urges local officials to prepare for possible abolition of Ohio property tax

State Rep. Ron Ferguson told the Martins Ferry City Council on Sept. 17 that a citizen initiative to abolish property taxes in Ohio is gathering signatures and that, if voters approve it, the state legislature will have about 18 months to create replacement revenue arrangements for local governments.

Ferguson, identified in the meeting as the state representative, said the state could reallocate or cut existing spending to preserve funding for core local services such as police, fire, schools, roads and elections. "We have the ability at the state legislature to make sure that the things that you are reliant upon are first responders, our education, roads, elections, all those core services of government... We have the money to be able to fund those things," he said.

He gave figures during his remarks, saying Ohio collected about $18.5 billion in property taxes statewide last year and that the state collected roughly $9.5 billion in income tax. "If you look at those numbers, obviously, about half of, income tax is about half of property tax," he said, arguing the income-tax base could cover part of any shortfall. Ferguson said other state expenditures — he cited sport- and convention-related subsidies given in recent years — would be candidates for reduction if property taxes were removed.

Council members and attendees raised concerns about distributional effects, especially for low-income and elderly homeowners facing steep valuation increases in recent reappraisals. One attendee noted that some local residents experienced property-value increases of 30% to 500% and said many do not know how to contest valuations. A council member expressed worry that eliminating property tax would lead to higher sales or other taxes and might shift burdens unevenly across communities.

Ferguson said a property-tax amendment would take effect Jan. 1, 2027, if passed, and because property taxes are collected in arrears, local governments would still receive roughly 18 months of revenue after a May vote. He repeated that legislators could grant local governments authority to levy alternative local sales or income levies if needed.

Ferguson also discussed prior state policy changes that reduced local revenues — citing the removal of certain personal property taxes and large economic-development incentives — as background for why communities feel strained. He urged local residents to organize and said he would help amplify citizens' concerns to state decision-makers.

The council did not take formal action on the matter; Ferguson offered his contact information and said he would assist with follow-up questions.

The remarks occurred during the council's reports and guest presentations portion of the Sept. 17 meeting.