Just two days after Cuyahoga County announced plans to sell up to $40 million in delinquent property tax liens to a private collector, lawmakers in Columbus introduced a bill that would sunset the practice statewide.
Why it matters: The timing underscores growing scrutiny around tax lien sales, a tool counties use to recover unpaid property taxes but one that has faced criticism for its impact on vulnerable homeowners.
Catch up fast:
- On Monday, Cuyahoga County announced plans to sell roughly 3,069 tax lien certificates tied to $33 million in unpaid property taxes to NAR Solutions, pending approval.
- The revenue would be distributed largely to schools (61%), with the remainder divided among the county, municipalities, and libraries.
- The sale will help make the county “whole” faster than foreclosure while still allowing property owners to set up payment plans, according to the county Treasurer.
The bill:
- House Bill 493, introduced this week, would end the sale of delinquent property tax certificates after January 1, 2027.
- The legislation amends Ohio law to require that all tax lien certificate sales or transfers be completed no later than December 31, 2026. Any certificates sold after that date would be void.
- The measure was sponsored by Reps. David Thomas, a Republican, and Daniel Troy, a Democrat, with several cosponsors, and reflects mounting concern over the long-term use of private lien sales as a revenue tool.
The big picture:
- Counties like Cuyahoga have relied on tax lien sales to recover revenue strained by high delinquency rates. Delinquencies in the county are at levels the Treasurer has “never seen” before, with more than $60 million in unpaid balances projected for 2025.
- The bill’s introduction suggests state lawmakers want to curtail the practice, especially amid questions about fairness, equity, and the role of private investors in public revenue collection.
What’s next:
- Cuyahoga County is scheduled to move forward with its proposed lien sale on Nov. 14, unless the council blocks it.
- Meanwhile, the debate at the statehouse could reshape how Ohio counties deal with unpaid property taxes going forward. If HB 493 passes, counties will need alternative strategies after 2026.
