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Commissioners discuss homestead property tax exemption

Salem City Schools Treasurer Michael Douglas, third from right, addresses the Columbiana County commissioners Wednesday regarding the piggyback homestead property tax exemption, urging them to consider the financial impact to local schools before implementing such an exemption. He was accompanied by several other local school treasurers at the commissioners’ meeting. (Photo by Mary Ann Greier)

LISBON — Some local school treasurers asked Columbiana County commissioners to evaluate the possible financial impact to school districts before deciding whether to approve an additional homestead property tax exemption for qualifying taxpayers.

“While I understand and appreciate the desire to provide property tax relief to county residents, I respectfully urge the board to consider the consequences such an exemption may have on the financial stability of our local schools,” Salem City Schools Treasurer Michael Douglas read from a prepared statement.

Commissioners were first questioned about their intentions regarding what’s being called the piggyback homestead property tax exemption a couple weeks ago by former county commissioner Dave Cranmer.

Commissioners still haven’t decided whether to approve the exemption which could nearly double the current savings for property owners who qualify and receive the current homestead exemption.

The proposed property tax relief was enacted by the state legislature, giving the power to county commissioners on whether to grant the increased homestead exemption. Commissioner Tim Ginter explained previously that the commissioners now have the option of doubling the homestead exemption, which would cut funding to all townships, schools, villages, cities, libraries, fire departments, police and any other entity receiving property tax income.

County Auditor Nancy Gause Milliken said previously that the homestead exemption is based on being at least 65 years or older and based on income, except in the case of a disabled veteran. She said to qualify, a property owner 65 years or older can’t make more than $41,000 per year.

For the current homestead exemption, she said the state replenishes that money. In the case of the new homestead exemption, if approved, the money lost won’t be replenished by the state.

Douglas was accompanied by Crestview Treasurer Charlene Mercure, United Local Treasurer Melissa Baker, Lisbon and Leetonia Treasurer Jennifer Coldsnow, and Columbiana County Educational Service Center Treasurer Lucas Cooper.

The bulk of every property tax bill payment from a resident is distributed to the school district where they live. The breakdown of where the money goes is printed on every property tax bill.

In his presentation, Douglas said property taxes remain one of the primary funding sources for public education and any reduction to that funding directly affects the “revenue available to support classroom instruction, student services, transportation, technology, extracurricular activities, and the many programs that our students and families rely upon.”

He also said schools are already facing financial challenges from rising operational costs, inflation and more demands for educational and support services.

“Reducing local tax revenues without a corresponding state reimbursement mechanism could create funding gaps that ultimately shift the burden back to local taxpayers through future levy requests or require districts to reduce services provided to students,” he read from the statement.

According to Douglas, the strength of the public schools affects the success of the communities, with strong schools attracting families, supporting local economic development and contributing to property values.

“Decisions that diminish educational funding may have unintended long-term consequences that outweigh the short-term tax savings provided by the exemption,” he said.

He added that transparency regarding the estimated revenue loss “and engagement with school district leadership would help ensure that any decision balances taxpayer relief with the continued ability of schools to provide a high-quality education for our children.”

mgreier@mojonews.com

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