Say NO to the “Piggyback Provision” That Doubles the Homestead Exemption and Owner-Occupancy Credit without Reimbursement from the State of Ohio

To the Honorable Lake County Commissioners:

We, the undersigned concerned residents, taxpayers, and homeowners of Lake County, respectfully urge the Lake County Commissioners to reject any extension or renewal of the voluntary additional homestead exemption and owner-occupancy credit as authorized by Ohio House Bill 96, commonly referred to as the “Piggyback Provision.”[1]

Any extension of this provision places an increased financial strain on local public entities – including public schools, public libraries, and metroparks – and reduces accountability in county budgeting. This provision diverts tax dollars that taxpayers previously approved specifically to support public education. Public schools across Lake County and throughout Ohio have already lost significant funding due to the expansion of private-school voucher programs that divert taxpayer dollars away from public education, as well as other state legislation affecting public-school revenue.

Lake County school districts rely on property tax revenue, as it contributes significantly to the operating budgets and funding for capital improvements. House Bill 96 further decreased the already inadequate state funding allotted to many public schools. Our districts are forced to fill the gap with property tax revenue. Across Ohio, property taxes make up an average of 44% of school district budgets. School districts rely on this property tax base to adequately fund public schools. 

Cuts to funding at the state and county level have forced Lake County school districts to cut teaching positions, as well as vital programs and services. Until the state changes its distribution of tax dollars to provide additional support to our district, property taxes should not be further discounted.  

We understand that across the county, additional cuts will likely follow if the schools budgets are not restored. Accordingly, Lake County should prioritize:

• Protecting the vital institution of public education.
• Fiscal responsibility and transparent budgeting.
• Exploring alternative funding solutions that do not adversely affect public institutions, particularly public schools, Lake County Metroparks, and local libraries.

Urging state legislators to fairly fund public schools, as required by the Ohio Constitution.[2]

The “Piggyback Provision” increases the tax exemption and credit that already exist. As it must be renewed annually, it was never intended to become a permanent measure. Residents previously approved tax levies to support public education and other local services—reducing the effective value of those voter-approved levies through commissioner action is unfair to taxpayers and creates uncertainty for the school district and other public institutions that deserve predictability and fairness in funding.

Despite the fact that the entire state is facing financial challenges, the vast majority of counties in Ohio rejected the option to expand the tax cuts authorized by the “Piggyback Provision,” recognizing that it  unjustly harms public institutions. In fact, 95% of Ohio’s 88 counties declined to adopt both measures – only four doubled the owner-occupancy credit and only nine doubled the homestead exemption.

While we appreciate fiscally-minded decision-making, Lake County residents deserve leadership that balances community needs with taxpayer protections. 

We urge the Lake County Commissioners to:

• Vote NO on any proposal to extend the “Piggyback Provision.”
  Commit to reviewing county spending priorities before reducing funding to public institutions, especially Lake County school districts.
  Increase public engagement and transparency regarding future tax and budget decisions.
  Protect Lake County children from adverse impacts to their education and futures.

We, the undersigned, respectfully urge you to support the children of Lake County, and reject any extension of this provision that negatively impacts the operation of our schools.

 
[1] House Bill 96 amended  O.R.C. §§319.304 (homestead exemption) and 323.152 (owner- occupancy credit).
[2] The Ohio State Constitution requires that the state “secure a thorough and efficient system of common schools throughout the state.” See Ohio Constitution, Article VI, Section 2.