Ohio House Passes Legislation Delivering Billions in Property Tax Relief to Ohioans

Speaker of the Ohio House Matt Huffman (R-Lima) today announced that House Bills 186 and 335, two initiatives that deliver property tax relief to Ohioans with more than $2.4 billion in savings, have been passed by the Ohio House of Representatives. 

“The Majority Caucus has been working tirelessly to pass meaningful reforms that provide property tax relief since we started this General Assembly back in January,” said Speaker Huffman. “Through the leadership of Chair Roemer, Representative Thomas and Representative Hoops, and members of this caucus, we’re able to advance initiatives today that will deliver direct savings to Ohioans statewide.”

STOP THE SPIKES - House Bill 186: 20-Mill Floor Inflation Cap

House Bill 186 saves Ohio property owners nearly $1.7 billion over the next three years by establishing a new Inflation Cap Credit that prevents increases in school district taxes from exceeding the rate of inflation. The initiative also includes an appropriation that holds Ohio school districts harmless for actual losses over this appraisal period compared to current collections by including an appropriation to help schools that are not up for reappraisal or reevaluation this year 

This legislation will protect homeowners from surprise hikes in their property tax bills when they live in a district that is on the 20-mill floor.  

“Today we make a statement to the people of Ohio, we heard you,” said Rep. Hoops. “H.B. 186, along with other legislation that we passed last week, and today, is legislation that is fair to the taxpayer and fair to the organizations who receive these property tax dollars.”

“We put a check on unlimited government with H.B. 186. Currently there is no limit to what schools can take from the property owner. That is over, and what happened over the last 5 years will never happen again,” said Thomas. “Government should not take more than inflation without a vote of the people, H.B. 186 would put that into law and won’t wait to start those limits, it starts 2nd half of next year on all eligible properties in school districts on the 20-Mill Floor.”

STOP THE SPIKES - House Bill 335: Inside Millage Inflation Cap 

House Bill 335 similarly caps increases in inside millage collections to the rate of inflation. The bill requires county budget commissions to adjust the rate of each inside millage levy so that it does not grow by more than the sum of the three previous years of inflation. This happens during the county’s sexennial reappraisal or triennial update. The net effect of this provision totals between $621 million and $763 million in property tax relief over the next three years. 

“House Bills 186 and 335 represent the most significant modernization of Ohio’s property tax system in decades,” said Rep. Roemer. “These reforms build on many of the recommendations outlined by the Joint Committee on Property Tax Review and Reform, which I had the privilege to co-chair.  After extensive hearings, testimony and collaboration, we’re delivering on the number one issue we hear about from Ohioans – creating a system that’s fairer, more transparent and easier to understand while preventing the unvoted spikes in property taxes.” 

“Rarely does government check and limit itself. With H.B. 335 that is exactly what we’re doing,” said Thomas. “Counties, cities, villages, townships, and schools receive unchecked revenue from the property owner during revaluations, that ends with H.B. 335.”

These actions build on the legislative work already accomplished by the House Republican Caucus through a slate of provisions, including:

PROPERTY TAX PROVISIONS IN FINAL, APPROVED BUDGET PLAN

• Direct Relief to Seniors, Disabled Veterans & Families of First Responders through homestead exemptions and up to 2.5% owner-occupancy tax credits.
• Levy reform to simplify levies, prevent hidden tax hikes, and stop excessive general fund carryovers. 
• Prevent Fraud through a new statewide property tax reduction screening system – discouraging abuse and protecting taxpayer dollars.
• Promoting Transparency by updating and reviewing property tax ballot language. 
• Enhances Checks and Balances for Property Tax Rates at the Local Level by requiring reports to the County Budget Commission and requiring local governments to take ownership of unvoted tax increases. 

HOUSE BILL 129 (passed the House on 10/8):

• Implements a check on tax hikes by counting emergency, substitute, incremental growth, conversion levies and the property tax portion of combined levies toward the 20-mill floor – closing loopholes & slowing tax spikes. 
• Ultimately lifts 237 districts off the 20-mill floor. 

HOUSE BILL 309 (passed the House on 10/8): 

• Slashes unnecessary collections by expanding the County Budget Commission’s authority to modify levies and trim unnecessarily high millage rates, shielding Ohioans from overly excessive tax bills. 

HOUSE BILL 124 (passed the House on 6/04):

• Empowers county auditors to have greater oversight over determining property tax sales information used for determining property valuations.

House Bills 186 and 335 will now go to the Ohio Senate for further consideration.