Commissioners vote to relieve property taxes

PERKINS TWP. — Erie County commissioners recently took up legislation to provide property tax relief for thousands of residents they serve. During a recent public meeting, and after weeks of deliberation, commissioners voted, 2-1, on approving credits to locally enact what's known as the homestead exemption and owner-occupancy credits offered to taxpayers. They'll take effect heading into 2026. Commissioners Matt Old and Pat Shenigo supported the measure while the third elected officeholder, Steve Shoffner, expressed opposition. State lawmakers afforded the opportunity for county commissioners to pursue this legislation at the local level, which Erie County ultimately did. Old and Shenigo emphasized they reviewed the financial impact on all concerned entities, determining it would "not be detrimental to anyone," they said. The two said they spoke with about 110 elected officials governing local bodies — like school districts, city councils and township trustee offices, among others — with only three individuals stating their dissatisfaction with this. Context on the credits Regarding the: • Homestead exemption, it's a property tax reduction — applied to the overall property tax — for homeowners based mainly on one's age or disability; This only applies to those making no more than $40,000 a year. For example, a qualifying Sadusky resident can expect to save about $400 a year. The tax credit could affect up to 6,000 property owners next year. The county auditor's office will contact homeowners to determine eligibility. • Owner-occupancy credits, they're property tax reductions available to homeowners; "The owner-occupancy credit offers up to a 2.5% reduction on property taxes for primary residential homeowners," the commissioners' statement read. "Unlike the homestead exemption, this reduction applies regardless of age or income." This credit could impact up to 14,000 properties next year. The tax credit will be automatically deducted from a property tax bill. A split decision All three commissioners gave reasons to explain their individual votes: • Old: We appreciate the general assembly giving counties more tools to provide meaningful property tax relief for residents. Erie County has been a leader across the state in reducing the local tax burden and promoting government efficiency. (This) vote is another measure in a continued effort to help those struggling with rising costs and unfair, unvoted tax increases. • Shenigo: This is another step we're taking to provide as much relief as possible to those who need it most, especially seniors on fixed incomes. We spent weeks hearing from different stakeholders in the process. I am confident that there is overwhelming support for this action across the community and amongst these stakeholders. • Shoffner: I have a concern about county commissioners making unilateral financial decisions for all other political subdivisions in the county. Easing the burden Erie County represents the only governing body in Ohio to, in this year, approve these two tax credits locally in addition to suspending its share of property taxes. In September, and for the second consecutive year, county commissioners agreed not to collect their share of property taxes from local residents. In this decision, Old, Shenigo and Shoffner all supported this measure. "In 2024, Erie County foresaw an unfortunate manifestation of the property tax system. Thousands of residents saw substantial property tax increases that were unvoted," according to a letter county commissioners sent out earlier this fall on this decision. This alludes to other taxing agencies — think local schools, area police and fire departments, among many others — requesting more money, through levy issues, in recent years. "We decided to take proactive action to mitigate the pain felt by county homeowners," the letter noted, talking about last year's initial effort to forgive property taxes on county government collections. When basing the information on a $100,000 homeowner, that person would have paid $120 in taxes specifically for Erie County's services. This equates to about $8 million in tax revenue not entering the county's coffers on an annual basis. "It might not be sustainable over time," Shenigo said. "But, for now at least, it's cash directly in their pockets." Erie County's everyday operating budget, which totaled about $37.5 million entering 2025, has withstood this forgiveness and will remain largely unaffected by not collecting its share of property taxes. Commissioners expressed confidence in operating a government with $37.5 million. Receiving anything substantially above this, right now, would just go into their reserves/savings account. "And this property tax relief will not result in any reduction in county services," Old said. "We have been very financially responsible over the last decade, and the dividend of that good government is resulting in this tax relief for our citizens." Old credited Shenigo, the longest-tenured commissioner, dating back to first serving in 2009, as the main reason this all occurred. He's helped turn the county's finances around, said Old, pointing to Erie County's debt. Most notably, entering 2025, the outstanding amount owed equaled $46.3 million. This marks a 60% decrease compared to when county debt peaked at $116 million in 2008. "This tax relief is really a tribute to Pat," Old said. "By him taking this hardline approach to finances, it's the reason we can provide relief to our residents and be the only county in Ohio that can suspend taxes." And it's continued in the years since with Old, first taking office in 2017, and Shoffner, first taking office in 2019, by his side. Ensuring this number continues to decrease ranks among the commissioners' top priorities. "We are continuing to pay off debt as it matures, but, more importantly, we continue to spend wisely on new infrastructure and only after careful cost-benefit analysis warrants," Shenigo said. And this isn't the end of fiscally responsible policies benefiting local residents, Old said. "We will continue our efforts to lower costs for the citizens of Erie County," he said. "We are the only county in Ohio to completely suspend the county's portion of the property tax bill. This means our residents will pay $0 to the county government. Through strong financial management over the last decade, we are in a position to take these actions."