Since the pandemic, property taxes have increased significantly in Ohio, leading to a rise in unpaid property tax debts. County treasurers are selling more debt than ever, with Cuyahoga County selling $18 million in debt last month and Franklin County selling $10 million last year. Investors are buying up this debt, giving them the right to collect with up to 18% interest.

Impact on Homeowners

This trend has raised concerns among mortgage lenders, who compare these transactions to payday loans, trapping cash-strapped borrowers in cycles of debt with the risk of foreclosure. Treasurers argue that tax lien certificate sales are necessary to enforce tax laws and fund local services such as schools and police.

Democratic gubernatorial candidate Amy Acton has proposed a plan to reel in some of the lending practices, while a bipartisan duo of Statehouse lawmakers is pushing to prohibit them altogether.

Related Issues

In related news, Acton has also unveiled a plan for new data centers in Ohio, which includes requirements for environmental and transparency standards, as well as hiring union workers. Additionally, Republican governor candidate Vivek Ramaswamy has faced criticism for his campaign performance, with some conservatives expressing concerns about his ability to connect with independent voters.

Original reporting: Signal Cleveland — read the source article.