Bill Prevents Tax Increase In Subsidized Lands
A bill is currently being passed to the Ohio House wherein a land’s taxable value will not increase because of a simple reason – the land has been invested to be used for residential development. This is to encourage residents who are getting their Ohio tax ID to purchase land without paying a lot.
The tax restriction for the property will be effective until they have started the construction, a parcel was already bought or eight years of time have already come to pass.
The proposed bill is called House Bill 371 and it is currently being critiqued by school districts as well as local governments. The bill has already passed the HouseWays and Means Committee with backing from the bipartisan.
Representative Derek Merrin is the sponsor of the bill and he said that the idea came from his discussions with local developers based in the northwestern part of Ohio. They believe that through this bill the development and activities relating to residential projects will be fast tracked.
Once a residential developer has been awarded a zoning approval of the local government to invest in a vacant parcel and make it into multiple lots then it should not be the reason why the whole taxable value of the parcel is to increase. It is possible for the new parcels to have different assessments but the total value should be more than the original parcel.
If the assessed value is seen to have an increase, it will not be acknowledged until construction has already started. The amount will be exclusive of the sewer, sidewalks, water extension, curbs, utility lines and driveways.
According to the estimate by the Ohio Legislative Service Commission, the bill will impact local governments as well as school districts that are imposing the property taxes which could have a minimum of millions of dollars.
The school district treasurer of Port Clinton, Jeff Dornbusch, said that they are in opposition because they think this as an action from the state which can remove their capacity in funding their schools.
Though many who have Ohio tax ID will be happy with the passing of the bill, not everyone will be appeased with the decision.