ŷ��AV

Do you remember that New York political party “The Rent’s 2 Damn High?” They ran a candidate for governor in 2010. Though it sounded like a Memphis blues song, the instigators tried to ride a wave of disgust about the unviability of city living. 

When the Hamilton County auditor announced an historic 34% rise on average in home appraisals, I wondered if we might see the “These Property Taxes Are Killing Me” Party. The underlying data were certainly vexing.

In many cases, the rich got richer on the backs of the poor. For example, the suburban community of Milford saw actual property tax cuts as did affluent Mariemont and Glendale, where the average house costs $363,000. To make things worse for those keeping track of unfairness, Mount Lookout, Montgomery, Terrace Park  and Blue Ash saw some of the smallest increases, while places like Camp Washington, East Westwood, English Woods and Evanston saw some of the largest. 

So, who and what are to blame?

First, the only people in Ohio who can change the fundamental system of property taxation is the Republican-dominated, largely rural-centered Ohio state legislature whose power comes from years of district gerrymandering. So, it was the cheapest of political shots when the local head of the Republican Party lambasted the Democratic Hamilton County auditor when she sent out tax bills a few months back that were calculated simply according to legal requirements. That’s how the Republicans, apparently, want it.

But why did some communities get better general results than others? Is there some dark political plot? No. It’s more likely a blend of capitalism and trends. Look, you can drive around the neighborhoods of Cincinnati, or watch the Home Garden Channel, and both will tell you that urban, older, hipper, more diverse neighborhoods loaded with period structures with “good bones” are what tons of young workers and empty nesters want and will pay for.

And then there’s capitalism. Housing speculators know that many renters and buyers want proximity to sports venues, culture, restaurants, bike lanes and bars.   So now you have older neighborhoods with sometimes empty buildings commanding much higher prices simply based on location and supply and demand principles after a combination of flippers, speculators and empty nesters have grabbed buildings for songs, pumped in some money and then rented, occupied or sold them to eager clients causing real estate transaction data to push up valuations, sometimes immensely.  

Yes, old timers in those neighborhoods could now sell for great profits, but if they love their home, or can’t see any economic advantage of them buying in the distant suburbs, they simply must endure the jump even if they’re now on a fixed retirement income. 

Drive through Mount Auburn, Liberty Hill, Madisonville, Oakley, Price Hill, O’Bryonville and Walnut Hills and see the gentrification. By contrast, Terrace Park, Mount Lookout and Glendale have very little room for significant change. Hence bigger spikes in older, lower-priced neighborhoods.

The problem is no matter what help we dream up for those most in need of help, working class, poor or older citizens, the lost tax revenue will make politicians run away.

Yes, you could greatly increase the Homestead Exemption, which makes the first $26,200 of appraised value exempt from taxation, or you could cap the percentage of increase of property value taxation every six years. But any help you give will reduce money for various services, including schools. The current system helps the Republican suburbs win while the Democratic cities lose. Not a good look for the legislature. 

One of the most creative partial solutions I’ve heard of comes from longtime Walnut Hills homeowner Michael Jordan. He’s communicating with the Hamilton County Commissioners about his proposal to reward people who buy and remain in homes giving stability to streets. It’s genius. If you bought a house, fixed it up and lived in it showing your commitment to the city and your neighborhood, you should get a sort of tax abatement. You’ve earned it. 

How to pay for that? Jeez, reduce big developer’s tax abatements. Make them share that money with neighborhood-loyal seniors. Or cut administrators. I don’t know. Figure it out. Otherwise, Republicans, that new political party could be coming for you. 

Editor’s Note: The views expressed in this commentary piece do not necessarily the express the opinions of ŷ��AV.