Commissioner: Ohio schools would need doubled sales tax to replace property tax

YOUNGSTOWN A Mahoning County Commissioner contends that Ohio’s sales tax would need to more than double to replace property tax revenue used to fund schools.
Commissioner Geno DiFabio stated on Monday in a social media post that the state’s current tax structure would not support a full repeal of property taxes without a significant increase in other taxes.
DiFabio said the state's property tax system generates about $15 billion for schools annually. He contrasted this with the state's portion of sales tax, which is 5.75% and yields about $14 billion a year.
His analysis suggests that to cover the current school funding, the sales tax would need to increase. In Mahoning County, the current sales tax rate is 7.5%, while neighboring Trumbull County has a rate of 6.75%, and Columbiana County's is 7.25%.
The commissioner’s remarks follow a statewide citizen-led effort to place a property tax repeal on the ballot. While supporters have proposed alternative funding sources like sales or income taxes, DiFabio cautions that such changes could impact other local services and governments.
DiFabio also pointed to recent changes in the state's income tax, which was reduced from 3.5% to 2.75%. This change, he said, reduced annual income tax revenue from around $10 billion to a range of $8.5 billion to $9 billion.
In July, Gov. Mike DeWine established a Property Tax Reform Working Group to review potential solutions. The group is set to issue a report with proposals by September 30.
DiFabio said that solutions like consolidating services and regionalizing government operations could help lower the financial burden and keep taxes manageable.
He concluded in an earlier Facebook post that without a plan from the state, a property tax repeal could lead to townships ceasing to exist and a reduction in essential services.
