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Economists believe eliminating property taxes could create issues

(The Center Square) — Despite a proposal to ban property taxes in Ohio, a group of economists believe the idea could create more problems for taxpayers.

A proposed amendment that would ban property taxes in the state took its second step earlier this month toward reaching voters in November.

The Ohio Ballot Board approved the measure as a single issue, moving the plan to the signature-gathering phase.

If voters approve, opponents have said a ban would eliminate $19 billion in funding for local governments and services.

What worries economists is replacing that money with higher sales or income taxes. Overall, in a survey by Scioto Analysis, 10 of 16 economists polled disagreed with the idea that replacing property taxes with another form of tax would help the volatility of tax payments in Ohio homes.

“This will mainly benefit wealthy older people who don’t work,” said Charles Kroncke, from Mount St. Joseph’s University. “This will not help working-class younger people who spend their income on consumer goods.”

Twelve of the 16 also thought eliminating property taxes would reduce per-pupil spending in the state, but some thought it might not make a difference.

“Ohio already has the option of school district income taxes; the effect on spending depends on how much voters decide to shift from property to income taxes,” said David Brasington, with the University of Cincinnati.

Organizers now must collect signatures from registered voters in at least 44 of the state’s 88 counties. The valid signatures must equal at least 3% of the votes cast for governor in the most recent gubernatorial election.

Statewide, the total number of valid signatures must be at least 6% of the that election vote total.

If that happens, the Ballot Board would again decide on ballot language, and voters would get the question in November.

Lawmakers and government leaders have also expressed concerned over the amendment that does not include an alternative funding source for local governments.

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