10/15/25

The sponsors of House Bill 493, Representatives David Thomas (R-Jefferson) and Dan Troy (D-Willowick), appeared before the House Local Government Committee today to deliver sponsor testimony on their bipartisan proposal to end the sale of delinquent property tax certificates in Ohio by January 1, 2027.

HB 493, jointly sponsored by Rep. Thomas and Rep. Troy, would sunset both public-auction and negotiated sales of delinquent property tax certificates after 2026 . Under current law, counties may sell these certificates to private investors who assume the government’s tax lien and can subsequently foreclose if repayment is not made—often adding substantial fees and interest in the process.

A Push to End “Profiting off Foreclosures”

In his testimony, Rep. Thomas framed the issue bluntly: “No one should profit off the foreclosure of a home. No one.” He explained that while many counties have already moved away from this practice, others continue to sell delinquent tax certificates to third-party firms that “add high interest rates and fees, balloon payments and bad payment structures,” ultimately profiting from foreclosures. HB 493, he emphasized, “says point blank that the selling of delinquent tax certificates will end by Jan. 1, 2027”.

Thomas linked this reform to his earlier work on payday-loan reform, describing tax-lien profiteering as another “predatory system” that traps struggling homeowners. “Our property-tax system is in crisis,” he told the committee. “This bill isn’t a silver bullet, but it’s another step toward protecting Ohio families and restoring fairness.”

Homeowner Protection and Local Accountability

Rep. Troy echoed these concerns, calling tax-lien sales “harmful and unacceptable.” As a former county commissioner, he recalled firsthand opposition from local leaders when a treasurer entered into tax-certificate contracts, despite warnings they would “maximize profits at the expense of fiscally strained homeowners.” He noted that rising property-value assessments have intensified hardship for taxpayers, and that “we need our local officials to work with [delinquent owners] to mediate and resolve their delinquency, not hire predatory third parties to harass them”.

OBL’s Longstanding Engagement on the Issue

Addressing problems with Ohio’s tax-lien sale system has been an OBL advocacy priority entering the 136th General Assembly. Bankers have long voiced frustration that third-party purchasers’ liens take priority over mortgage lenders, eroding recoverable equity and complicating foreclosure and redemption processes.

An earlier OBL policy brief called for greater transparency and presale notice to interested parties, highlighting that lenders often lacked awareness before their collateral was subordinated . HB 493 now goes further—ending the process entirely rather than incrementally reforming it.

From Day at the Capitol to Legislative Action

This legislation represents a direct outcome of banker engagement during OBL’s Day at the Capitol event in June, where members raised the issue in meetings with legislators. The introduction and bipartisan support of HB 493 mark a major step toward a long-sought policy solution.

OBL will continue to monitor the bill’s progress and work with lawmakers to ensure any transition away from tax-certificate sales preserves fairness for homeowners and lienholders alike. OBL is seeking bankers interested in testifying on this issue at a future hearing.

For questions or to share feedback, contact Don Boyd, OBL VP of State Government Relations & General Counsel, at (614) 340-7608 or dboyd@ohiobankersleague.com.