By Brian Massie, A Watchman on the Wall
Many citizens, including this writer, are confused about the constitutionality of property taxes in Ohio. The confusion stems from the December 19, 1991 complaint filed by the Ohio Coalition for Equity & Adequacy of School Funding in a case known as DeRolph v. Ohio. We will try to add some clarity on this subject by asking the experts in the field.
The following link gives a great detailed summary of how the case moved through the Ohio Court system.
First expert’s summary:
In short: Ohio courts have never ruled property taxes unconstitutional for schools. Over reliance on property taxes leading to funding disparities across districts was found unconstitutional. However, the Court also has not ruled on whether today’s system relies on them too heavily.
For additional background:
The Ohio Supreme Court previously found that previous school funding formulas were unconstitutional due to over reliance on property taxes but it relinquished jurisdiction over the DeRolph case in the early 2000s.
To be clear, the Court never said property taxes could not be used for school funding. It only stated that property taxes could not be the overwhelming component of what is used for school funding as it had been prior to the DeRolph litigation. This was because doing so led to an overall school funding system with disparities across the state violating Article VI Section 2 of the Ohio Constitution which mandates a “thorough and efficient system of common schools.”
Today, how much funding an individual school district gets from the state vs. from local property, or in some cases local optional school district income taxes, varies greatly and is contingent on how much local capacity for local revenues there is. But the state IS spending more, though the percentage varies year to year, largely as a result of property value increases.
The wealthier the district is on paper (even if it does not actually raise the commensurate level of funds locally that it could), the less funding it gets from the state and the more it has to get from local taxation, predominantly property taxes.
However, because the state plays a sort of Robin Hood role and spends more in relatively property tax poor districts, those districts now do not have to rely as much on property taxes as they did at the time of the DeRolph litigation. This reduces the disparities lying at the heart of DeRolph, making it unclear what the current Supreme Court would say on the current school funding system.
Since DeRolph, the state has also spent substantially more between the school funding formulas and through the Facilities Commission where the state picks up a major percentage of the costs of new and renovated building construction.
So the bottom line regarding property taxes for schools being constitutional, the answer is that property taxation is clearly constitutional in theory, BUT it is unclear whether the current system relies too much on property taxation to be constitutional in contemporary practice.
To date, no school district has pursued new Supreme Court litigation testing whether the current funding system relies too heavily on property taxation. As a result, the constitutional status of today’s system remains unresolved.
2nd Expert’s Opinion:
It isn’t the use of property tax dollars that the Supreme Court ruled on being unconstitutional. Ironically too, it wasn’t from the taxpayer perspective they ruled either. They were speaking to the unequal treatment of rich vs poor communities. The wealthy communities spent more on their kids because they raised more money locally, the poor communities couldn’t. Additionally, the buildings were another aspect to this, wealthy school districts had new, poor did not. Legislators over the last 20 years addressed this through balancing out the funding more. This is why the poor districts receive a ton of state money per pupil vs the wealthier districts getting much less. Whether the district raises their local funds from property or income tax, the DeRolph decision essentially required us to level the playing field for kids. Horrible perspective that money levels the playing field, but that is how complying to their decision has to be done. This would likely be the same if just state tax revenue paid for schools, more in poorer areas per pupil to comply.
There hasn’t been a challenge since and the Supreme Court hasn’t used judicial review to say the current way we do it is or is not constitutional. The schools are suing the state saying it isn’t and that they want a tremendously larger amount of money naturally, it is possible in several years the Supreme Court could take up that case and review again. But I don’t think it is fair to say the current isn’t constitutional because the Supreme Court hasn’t said. The Supreme Court reviews specific questions and specific cases, not wholesale policy as the legislators make it.
Brian Massie’s Summary:
The experts have weighed in, and you can read their opinions and decide for yourself. However, here is a ruling from an average citizen – me.
The use of property taxes for school funding APPEARS to be constitutional.
Whether or not the current school funding formula is constitutional is a “DEFINITE MAYBE”, which is higher than my legal ruling of a “MAYBE MAYBE”.
What is crystal clear to me is that here will be the ultimate ruling from the citizens of Ohio on the November, 2026 ballot. We recommend that we “starve the beast”, and abolish Ohio property taxes.
Leave no doubt in the minds of the State of Ohio’s legislative, executive and judicial branches. Tell them that we no longer want to be just renters from the government.
They all swore an oath to support and defend the Ohio Constitution. We remind them that this what they swore an oath to defend:
Article I, Section 1 | Inalienable Rights
Effective: September 1, 1851
“All men are, by nature, free and independent, and have certain inalienable rights, among which are those of enjoying and defending life and liberty, acquiring, possessing, and protecting property, and seeking and obtaining happiness and safety.”
Property ownership is the foundation of freedom and liberty. Without it we are merely serfs to a tyrannical government. Families cannot pass their wealth from one generation to another.
Sadly, we must remind Governor DeWine that fraud, waste and abuse of taxpayers’ hard-earned money is not a “cost of doing business”.
There is a tax revolution taking place in Ohio in 2026, and Ohio’s elected officials will reap what they have sown..
ANY TAX CAUSING A CITIZEN TO BECOME HOMELESS IS IMMORAL!
Categories: Community Activism, Contributors, Real Estate Taxes, Uncategorized