Op-Ed | Property Tax Changes Impact Businesses

VIEW ARTICLE AS FEATURED IN THE DAYTON DAILY NEWS

May 24, 2026 – Proponents for eliminating property taxes in Ohio are gathering signatures from over 400,000 registered voters to place a proposed constitutional amendment on the November 3, 2026 ballot, however, they stated that they are behind on gathering signatures and most likely won’t make the July 1^st deadline.

This proposal emerged from longstanding challenges in Ohio’s tax structure. For decades, the Ohio Supreme Court has ruled that the state’s reliance on property taxes to fund public education is unconstitutional. At the same time, business property owners are experiencing growing frustration with rising tax burdens.

In 2025, the chamber analyzed commercial properties in the City of Dayton. The findings were striking: a property owner with property valued at $1 million, faced approximately $62,000 annually in taxes and assessments, an effective rate of 6.2%. These costs are the result of years of layered levies supporting schools, local governments, public safety, libraries, social services, and infrastructure.

This system did not develop overnight, and it will not be resolved overnight. Property taxes fund a complex mix of essential and voter-approved services that communities rely on every day. Any proposed changes must be evaluated to ensure that critical services, such as K-12 education, police and fire protection, and local infrastructure remain stable.

Recent feedback from the Dayton region’s business community underscores the need for a deeper dive. In a recent chamber survey, 25% of businesses indicated they would support eliminating property taxes, 39% opposed the idea, and 37% said they need more information before forming a position. That uncertainty reflects the scale and complexity of the issue.

State leaders also raised important questions. Reacting to a potential $24 billion deficit for schools and emergency services if property taxes are eliminated, state leaders indicated other taxes in Ohio would most likely increase to cover essentials services. They stated that eliminating property taxes could result in potential sales tax increases to 18% and income tax increases to 15% to replace lost revenue. For employers and employees alike, that potential tax shift raises serious economic considerations.

The chamber recognizes that our business members need clear, comprehensive information to understand the full implications of this proposal. We are working with business organizations across Ohio, engaging our Legislative & Regulatory Affairs Committee, and collaborating with volunteer leaders to ensure our advocacy reflects the best interests of job creators in the Dayton region.

At the same time, we are encouraged that policymakers are pursuing reforms for the business community. In December 2025, the Ohio General Assembly enacted measures providing tax credits for property owners and limiting un-voted inside millage school levy increases to inflation.

The bottom line is clear: property taxes on businesses are significant and growing. Pro-business reform is necessary at both the state and local levels. At the same time, any solution must be approached with care. The goal should be to strengthen Ohio’s competitiveness without creating unintended consequences for the businesses we seek to retain, attract, and grow.

Chris Kershner
President & CEO
Dayton Area Chamber of Commerce