Property Taxes-Why It Is Time For Change

What started out as a minor tax has morphed into an out-of-control monster, pushing homeowners out of their homes, increasing rents and pushing prices up as businesses pass on property taxes to their customers. While a few politicians have tried to apply a combover, property taxes have become complex and undemocratic beyond repair.

Citizens for Property Tax Reform, a non-partisan, grassroots organization, is collecting signatures for an Ohio constitutional amendment to repeal property taxes. This will open a path to fund schools and other institutions with a more equitable system. You can sign the petition Wednesdays, 6–8 PM, at 15635 Madison Avenue in Lakewood.

Before becoming involved with Citizens for Property Tax Reform, I did my own research. The more I learned, the more I realized significant change is needed. Here are a few reasons outlining why I decided to volunteer as a signature collector:

All of us complain about federal income taxes – yet at least federal taxes are based on money we have earned and have access to spend. We do not pay income taxes on our home’s value, because the cash invested is tied up in the home. Why should we allow this for property taxes?

Also, wages taxed are based on a definitive, easily determinable value. As a certified public accountant with many years of experience in property valuation, I can assure you that there is no such thing as a definitive value for a tax appraisal. There is a range of justifiable values that can be produced using accepted techniques. In this time of tightening budgets, counties are under pressure to come in on the high side.

Now that the first couple layers of the onion have been peeled back, the real crying can begin. All tax districts in Ohio charge 10 mills which voters do not get to approve. These levies are known as inside levies. Like many cities, Lakewood also collects property taxes through its charter, which are referred to as charter levies. The chances of getting to vote on a charter levy are extremely small. Lakewood’s charter committee only meets every 10 years to recommend changes for voter approval and is appointed by city leadership who have shown no interest in reducing charter mill rates.

One could legitimately argue that it would be impossible for voters to vote on everything, but shouldn’t we get to vote on levies that have an oversize impact on our wallets? You may have heard that when market values go up, mill rates are reduced to lessen the tax increase. This reduction does not apply to inside or charter levies. Let’s put some numbers to this so we can see how bad this is. I have a property in Lakewood with a market value of $200,300 in 2024 resulting in $5,380 in property taxes and a $334,400 market value resulting in $7,687 for property taxes in 2025. There are 9 charter and inside levies out of 39 levies. Of the $2,307 increase in taxes, $1,011 is from those 9 inside and charter levies.

Charter levies also obfuscate how much we are really paying for government services. Lakewood income taxes pay for day-to-day operations but there is a charter levy that also covers general expenses. We pay for police and fire salaries from city income taxes, but their pensions are funded through charter levies. We pay monthly water and sewer bills, but there is also a charter levy to pay for sewer upgrades. Most of us are tired of the endless fees that get tacked onto our phone bill, but at least they all appear on the billing statement. Figuring out what we pay for city services in total should not require any detective work.

Are you tired of charter and inside levies? Let’s move on to levies that voters get to approve. While some of these levies expire, many others do not. 61% of the mills homeowners are paying in 2025 come from permanent levies. Lakewood schools have operating levies on the books for 1976, 1980, 1983, 1987, 1990, 1995 and 1999 for example. Yes, voters approved these levies but should we have the ability to reexamine what we are paying as time and needs change?

Before we end, let’s touch on Taxpayer Incremental Financing (TIFs). For those who are greatly concerned with the state legislature underfunding our schools, for nearly 50 years, Ohio law has given cities, townships and counties the power to divert real estate revenues from schools to private and public development. TIFs can divert funds away from schools for up to 30 years and for other recipients of real estate tax revenues for up to 60 years, without any voter approval. If voters pass the amendment to repeal property taxes, all active and future TIFs would be stopped dead in their tracks. Citizens could then establish a more equitable tax system, forcing developers to fund their full share like the rest of us.

If I have convinced you to sign —or you would like to learn more—stop by 15635 Madison Avenue any Wednesday from 6–8 PM.

Micah Zakem is a small landlord and certified public accountant with 15 years of experience in commercial real estate who enjoys working on homes and woodworking.