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Leaders of tax reform group picked

Gov. Mike DeWine named his co-chairmen of a property tax reform working group, but his fellow Republicans in the state Legislature say it doesn’t change their plans to override three of his vetoes.

DeWine on Thursday announced that Bill Seitz, a former Ohio House and Senate member, and Pat Tiberi, the president and CEO of the Ohio Business Roundtable and a former congressman, would chair the group. Other members will be named at a later date.

But state Reps. David Thomas, R-Jefferson, and Tex Fischer, R-Boardman, said the governor’s announcement doesn’t impact the Ohio House’s schedule to meet July 21 to override three of DeWine’s property tax vetoes.

“We’re long past the time for a working group,” Fischer said. “We’ve had working groups. We have to do something. We need to solve the problem and with all due respect to Bill Seitz and Pat Tiberi, another working group isn’t the answer.”

Thomas said tax reform has been studied by House Republicans and “the last thing our taxpayers need is another committee. We need to pass bills. This doesn’t change our goals for the overrides. It’s almost like the governor didn’t think we’d meet this fast to override his vetoes.”

Among the 67 line-item vetoes in the state budget from DeWine were four property tax changes.

Thomas, who’s been a leader in property tax reform in the Legislature, said the Republican-controlled House has enough votes to override three of them.

The Senate, which is also controlled by Republicans, hasn’t scheduled a session to consider overriding the vetoes. The Senate is waiting to see what the House does though its leaders say it also has the votes to override DeWine’s vetoes on the three bills.

State Sen. Al Cutrona, R-Canfield, said he anticipates the upper chamber to “act quickly, within the next few weeks after the House votes.”

Cutrona said House leadership wouldn’t have called for the session to override the veto if it didn’t know it had the votes.

“As for the Senate, all I can say is we must first see how the veto override goes in the House,” Cutrona said. “However, I along with my colleagues in the Senate are committed to providing property tax relief.”

DeWine said Thursday: “As property values have increased in Ohio over the last decade, the resulting property tax increases have strained many family budgets and challenged the financial security of many on fixed incomes. Building upon previously expressed concerns and work done at many levels of government, I am forming this property tax reform working group to issue concrete recommendations for meaningful property tax reforms that address the needs of property owners, are affordable to our state budget, and protect local schools and other services.”

The only property tax veto issued July 1 by DeWine that won’t be considered at the July 21 House session, announced Tuesday, would have the largest impact on property taxpayers.

It would have limited school districts to only up to 40% of their annual operating budget in their cash reserves. That was estimated to save $2.17 billion in property taxes.

There was a provision that the 40% limit could be exceeded if the money is kept in a separate fund for construction and maintenance projects.

Thomas said that override would be challenging, but could be considered later in session by the General Assembly.

The three vetoes the House will consider overriding includes a provision to give county budget commissions — made up of the county auditor, treasurer and prosecutor — control over tax rates and levies.

The commission would be permitted to unilaterally cut property tax rates if revenues exceed expenditures, even if voters approved ballot initiatives for that funding.

Also to be considered for an override is a provision DeWine vetoed requiring school districts to include emergency and substitute levies in their 20-mill floor, which guarantees they receive at least 20 mills of funding even if they are below that amount. This would have put about 200 of the state’s 611 school districts off the floor.

The other veto took away a legislative-passed restriction on any government entity to seek replacement levies and for school districts also not permitted to ask for emergency or substitute levies.

State Rep. Lauren McNally, D-Youngstown, said DeWine vetoed the provisions because “they are drastic changes to our tax system that will hurt our local communities. Overriding this veto will fast track a bill that is far from perfect. We have processes in place to vet legislation and these ideas have already had introductory hearings in the Ways and Means Committee. It is not right or fair to make these complicated and sweeping reforms without giving local governments the opportunity to testify on what will impact them.”

McNally said the vetoes were “the best thing for Ohioans and I hope that” they’re not overridden.”

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