How is that possible? Because, since the 1970s, Ohio has had stringent limitations on tax rates, known as House Bill 920. The law, later codified in the Ohio Constitution, requires a decrease in the rate of most property tax levies any time property valuations go up. As a result, existing levies generate close to the same amount of revenue regardless of property valuations.

Property taxes will not remain entirely flat because HB 920 includes some exceptions. The first 10 mills, which do not require voter approval and are called “inside millage,” as well as certain levies such as those created by city charters, aren’t covered. That’s why taxes are going up.

However, for most of the county’s school districts, which rely on the property tax and account for the bulk of such taxes, the tax increases are modest, at best. For instance, the Cleveland Metropolitan School District is expected to see a $6.4 million revenue increase if it collects the full amount of additional taxes. In Fiscal 2023, CMSD billed overall property taxes of $336 million, so that $6.4 million works out to less than a 2% gain. Parma’s schools are expected to get an additional $3.6 million, compared to the more than $100 million in property tax revenue in Fiscal Year 2023.

Overall, school districts, municipalities, the county and other taxing authorities are expected to see an increase of $135 million, according to county data. Last year’s taxes totaled more than $2.8 billion. Thus, the overall countywide increase in property taxes will be under 5%. This includes both residential and business taxpayers; data isn’t available yet just for homeowners, but that would still be under 7%.

Some cities will be seeing much larger increases compared to the amount of revenue from property taxes last year. However, unlike schools, cities don’t depend on the property tax as their main source of revenue, so this doesn’t amount to a big windfall for them, either.

While that’s the overall picture, there is good reason why some homeowners are screaming about property tax increases. That’s because House Bill 920 adjusts tax rates based on the average valuation increase in the community. If your home’s value has gone up by more than that, you will see a bigger tax increase – and that’s what’s happening to some homeowners.

These homeowners – and renters, who pay property tax through their rent – need help. One solution is called a circuit breaker – a program adopted in one form or another by 29 states where those paying more than a certain share of their income in property tax get a tax credit or rebate. Two bipartisan bills now before the Ohio General Assembly, Senate Bill 271 and House Bill 645, would provide up to $1,000 in a refundable state tax credit for those paying more than 5% of their income in property tax who meet certain income and other qualifications.

We don’t need to ask schools and other taxing authorities in Cuyahoga County to give back revenue. Rather, the state should provide relief to those who are having a tough time because the property tax is out of line with their incomes. That’s a solution targeted to the real problem.