Representatives Jim Hoops and David Thomas Introduce 20 Mill Floor Inflation Cap Legislation

COLUMBUS - State Representatives Jim Hoops (R-Napoleon) and David Thomas (R-Jefferson) recently introduced a bill they believe will be one of the strongest pieces of property tax reform legislation this General Assembly. 

The pair of lawmakers are both former County Auditors and used their backgrounds to craft legislation will provide long-term relief to homeowners. Their 20 Mill Floor Inflation Cap bill will limit the revenue school districts can receive from the 20 Mill Floor to inflation, which will lower the spike of unvoted property tax increases.

“Since the pandemic, the perfect storm has arisen,” said Hoops. “Due to lack of housing and the increasing costs of building homes, anyone who bought or sold a home found the sale price increased dramatically. 

Hoops went on to add, “In the past, the 920, which was put in place back in the 70s to combat inflation, usually took care of the issue when values were too excessive. However, because of the 20 mill floor rule that was put in place for the schools in the 80s, values have finally caught up with us and as such has made the 920 factor obsolete for those tax payers that live in school districts who now sit at the 20 mill.”

Every school district in Ohio is guaranteed to receive 20 Mills or 2% of their district’s property value in tax rate. Roughly 400 of Ohio’s school districts have an effective tax rate that is below their guaranteed 20 Mill tax rate. 20 Mills are still applied to the district’s value and as value grows, the taxpayer’s burden grows with value causing spikes of unvoted property taxes. 

“I’m a firm believer that if you want more than inflation in tax revenue, the voters should approve that and this bill greatly helps lower the spike in taxes with property value increases,” said Thomas. 

The legislators have been working since November on this measure. Stakeholders from the school community, county auditors, the Department of Taxation, the Department of Education and Workforce, and House leadership have held conversations on the most impactful way to craft the reform in a way that will meet legal muster and provide long-term relief for property owners. 

The 20 Mill Floor is largely seen as a main culprit for the spikes in unvoted property taxes across Ohio over the past several years as values have increased and more schools are below the guaranteed tax rate. 

“This proposal is like a base layer, something that must be done as a core aspect to property tax reform with other ideas added on top to give additional relief,” said Thomas.

The sponsors are hopeful for fast action in the House of Representatives to avoid more schools moving below the floor, causing large windfalls of tax dollars next year. Property tax reform bills are continuing to be introduced weekly in this General Assembly as the issue remains top of mind for many lawmakers. 

The legislation awaits a bill number and House committee assignment.