House Republicans Unveil Legislative Effort to Deliver Billions in Property Tax Relief

State Representatives Bill Roemer (R-Richfield) and David Thomas (R-Jefferson) today announced landmark legislation (House Bill 335) that, if adopted, would deliver $3.5 billion in property tax relief to Ohioans across the state, overhauling the property tax system in the most impactful way since 1976. The Property Tax Relief NOW Act combines several bills into a comprehensive package that strengthens taxpayer protections, increases transparency, and improves local government accountability — all while preserving essential services.

“The bold proposals in this bill will directly impact every property owner in Ohio in a very meaningful way on their property tax bill next year,” said Rep. Thomas, who serves as vice chair of the House Ways and Means Committee and is sponsoring the measure. “We have been gathering these ideas for years and know the time is now to address this crisis before it gets even worse. We have to respond to the needs of our taxpayers who saw record spikes over the last 5 years and paid more into the property tax system because of high values and local entities accepting the unvoted inside millage. We must return the power to the voters and give oversight to taxpayers." 

"This is bold legislation that will have a significant impact on property tax reform,” said Rep. Roemer, who chairs the House Ways and Means Committee. 

Caps on School and JVSD Taxes
The bill works to address spikes in unvoted property taxes by creating a new tax credit to limit the growth in revenue school districts can receive from the 20-mill floor to the rate of inflation. For further explanation, if a house’s property value goes up, and a school district is at the 20-mill floor, there will be a limit on what the homeowner will have to pay in property taxes. 

Local Homestead Exemptions
The bill empowers local governments to provide direct relief to Ohio’s must vulnerable without using state dollars through a local homestead exemption. It authorizes the Board of County Commissioners the permissive authority to provide local homestead exemptions to county residents (including low-income seniors, disabled veterans, and the spouses of first responders killed in the line of duty), applied against the resident’s total home value. These local tax exemptions are in addition to the state’s existing homestead exemptions and will be identical to the state’s traditional and enhanced homestead exemptions.

Promotes Transparency in Property Tax Levies
The legislation works to give taxpayers a guaranteed tax rate and a clearer understanding of the impact of their vote on levies. The bill removes a loophole in the tax reduction factor by requiring that certain fixed sum levies count toward the school district 20-mill floor calculation, including emergency levies. Additionally, the bill eliminates the authority of school districts to seek new substitute levies. Unlike other fixed-sum levies, substitute levies generate additional revenue when new construction is added to the tax list. Finally, the bill will prohibit a school district from changing the purpose of its inside millage in any way that would increase its property tax revenue.

Billions in Direct Relief 
Inside millage is property tax millage that may be levied without prior voter approval, up to 10 mills per property. The bill includes provisions that prohibit all political subdivisions from levying inside millage, except townships. Townships may levy inside millage, but it is limited to the amount they levied in tax year 2024. This update will deliver a direct tax savings of $3.5 billion dollars to Ohioans.

Allows Optional Local Sales Tax Increase
As part of the bill, counties may raise their sales tax by up to 1% only with approval from the majority of voters, giving communities alternative revenue options beyond property tax increases.

Oversight of Excess Reserves & Increased Public Input on Levies
The bill expands on the House-passed version of the budget by requiring the County Budget Commission (CBC) to hold public hearings if any taxing authority carries over more than 30% of its annual budget in reserve. The County Budget Commission can reduce future levies accordingly. Additionally, the legislation ensures greater community awareness and involvement by requiring public meetings on new county commissioner proposed levies. 

Prevents Shifting Inside Millage
Additionally, the bill prohibits a school district from increasing tax revenue by changing the purpose of unvoted inside millage, reducing stealth tax hikes.

More Authority for Budget Commissions
Under this legislation, County Budget Commissions get greater power to monitor, review, and adjust levies — improving coordination across taxing authorities.

The bill will receive a committee assignment in the coming days.