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Senate committee hears modeling and local testimony on bill to let jurisdictions create residential stability zones
Summary
Proponents told the Senate Local Government Committee that Senate Bill 42 would let local governments create residential stability zones to limit sudden property‑tax increases for qualifying long‑time, lower‑income homeowners; county modeling presented showed modest projected millage impacts in sample communities.
The Senate Local Government Committee held a second hearing on Senate Bill 42, which would authorize local governments to designate residential stability zones (RSZs) that let qualifying homeowners apply for temporary or indefinite partial property‑tax exemptions.
Tony Long, general counsel and director of energy and environmental policy at the Ohio Chamber of Commerce, told the committee the bill would give local officials a tool to limit sudden tax spikes that can push long‑time residents toward foreclosure. "Residents of the RSZ that meet specific criteria on area median income and ownership and occupancy requirements can then apply... Applicants under age 60... receive an exemption that lasts for 6 years. And if they're over 60, that exemption could be indefinite," Long said. He described the exemption level as something set by the local resolution establishing the RSZ.
Edward Stockhausen of Cleveland Neighborhood Progress testified that the legislation fills a gap for vulnerable homeowners. He provided statewide figures to illustrate the scale of need, saying Ohio has about "4,700,000 households," roughly 3.1 million homeowners and approximately 991,000 homeowner households at or below 80% of area median income.
Committee members pressed witnesses on implementation and fiscal effects. When asked whether an exemption travels with the property, a committee member asked, "How are you gonna handle when they wanna sell... Will they get the same reduction?" Long responded, "I don't believe it goes with the house itself... Once you sell that house, then you would no longer be eligible." He and other witnesses offered to provide worksheets and county modeling showing how foregone revenue would be calculated under different millage assumptions.
Joe Gilligan, director of policy for the Franklin County Auditor's office, presented county modeling and sample impacts. He said modeling for several taxing districts showed differences in effective tax rates of less than two mills in the most impacted example and gave an illustration contrasting a $723 tax increase absent an RSZ with smaller increases under partial exemption scenarios.
Hamilton County Auditor Jessica Miranda described RSZs as "permissive, targeted, and most importantly reasonable," saying the tool would allow local governments to tailor relief to residents while preserving local control and not requiring state General Revenue Fund expenditures.
The committee did not take a vote on the bill. The chair concluded the second hearing and made additional written testimony available to members on their iPads.
The committee's next steps were not announced during the hearing.
