Since the pandemic, property taxes have leapt to new highs in Ohio, with investors from out of state buying up unpaid debt at record levels. County treasurers are selling more debt than ever, with Cuyahoga County selling $18 million last month and Franklin County selling $10 million last year.

Investors and Tax Lien Certificates

These investors buy up the debt, giving them the right to collect with up to 18% interest, although some treasurers negotiate for lower interest rates when they sell. Mortgage lenders have compared the transactions to payday loans, trapping cash-strapped borrowers in cycles of debt – with risk of foreclosure on the line.

Treasurers say the tax lien certificate sales are a key way to enforce tax laws to fund schools, police, and other local services. However, some lawmakers are pushing to prohibit these practices altogether, citing concerns over the impact on homeowners.

State Politics and Policy Debates

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. The issue has sparked debate over the role of government in regulating property taxes and the impact on local communities.

Original reporting: Signal Akron — read the source article.