Warren County leaders warn proposed state property tax reform could cut a third of county revenue

Warren County officials spent a substantial portion of the work session warning that proposed changes to state property tax rules in the pending Ohio budget could remove roughly a third of the county’s revenue and force rapid local responses such as new levies or service cuts.

Auditor Nolan told the commissioners the legislation being drafted would, if adopted as currently described, produce “a third of our revenue would be gone instantly,” and that the county would face a five-month cash gap even in the “best case” scenario if residents approved replacement levies. He said counties statewide and multiple associations have raised legal and constitutional concerns but that the budget process could fold the language into a conference committee package without further amendment.

Commissioners and staff discussed possible responses: seeking meetings with local state lawmakers, drafting and sending a county letter of opposition, and exploring revenue options such as a county sales-tax increase. Nolan said the county would need to raise its sales tax by about one percentage point to replace the county’s share of lost revenue; staff estimated smaller quarter-point increases yield $10–12 million but that a full 1% increase would be needed to offset the projected loss for the county alone.

Officials said the proposed state plan would also alter how school inside millage is treated and could push school districts to seek income taxes or other local levies. Commissioners stressed the county lacks authority to unilaterally replace state revenue and that the legislature, not the county, should lead any change in tax structure.

The board discussed coordinating with the County Commissioners Association of Ohio, county auditors and local school and municipal leaders. Staff presented a draft letter prepared by county counsel and offered to forward it to the board; commissioners asked to finalize and send the letter to the county’s three state representatives and state senator and to hold a public session or work session with those representatives if they would attend.

No formal board vote was recorded on a position; commissioners directed staff to refine outreach materials and consider scheduling a meeting with the county’s state delegation. Several commissioners and the auditor said they had already been in contact with state lawmakers and urged residents and local leaders to press for alternatives to the immediate property-tax changes being discussed in Columbus.

The discussion included references to advice from bond counsel and other statewide legal counsel cautioning that the draft plan could be unlawful and to the possibility of litigation if the language becomes law.