Rep. Brennan Introduces "Property Tax Refund Act" to Deliver Relief Without Cutting Local Services

COLUMBUS – State Rep. Sean Patrick Brennan (D–Parma) has introduced House Bill (HB) 365, the Property Tax Refund Act. HB 365 provides meaningful property tax relief to homeowners and renters while protecting funding for local schools, police and fire departments, libraries, and other essential community services.

HB 365 establishes a property tax “circuit breaker,” a proven policy used in numerous states that provides targeted relief when property taxes become an excessive share of a household’s income.

“As Ohioans continue to struggle with rising property taxes, they deserve real relief that doesn’t come at the expense of their local schools or public safety,” said Rep. Brennan. “Unfortunately, many of the proposals currently being discussed simply shift the burden by cutting the revenue our communities depend on. We can provide meaningful tax relief without forcing local governments, libraries, or school districts to make impossible budget choices.”

Under HB 365, eligible homeowners and renters would qualify for assistance when their property taxes—or the property tax portion of their rent—exceed 5% of their household income.

HB 365 would:

• Establish a property tax “circuit breaker” for eligible homeowners and renters.
• Allow recipients to receive assistance either as a refundable Ohio income tax credit or a direct rebate for individuals who do not file state income tax returns.
• Make households earning up to $100,000 annually eligible, with that threshold adjusted for inflation.
• Limit eligibility to owner-occupied homes and rental units below annually updated home value and rent thresholds to ensure relief is targeted to middle- and lower-income Ohioans.
• Provide annual relief ranging from $200 to $1,000, depending on household income, with benefit amounts adjusted annually for inflation.
• Include renters, recognizing that property taxes are built into the cost of rent and contribute to Ohio’s housing affordability challenges.

Unlike proposals that reduce local property tax collections, Rep. Brennan’s legislation provides relief through the state’s tax system rather than by reducing the revenue local communities rely on.

“Every Ohioan wants property tax relief, but we also want safe neighborhoods, quality public schools, well-maintained roads, and strong libraries,” Rep. Brennan said. “Those aren’t competing priorities. The Property Tax Refund Act recognizes that the state has a responsibility to help families facing an unfair property tax burden while preserving the local services that make our communities great places to live. That’s a responsible, balanced approach to one of Ohio’s most pressing challenges.”

Rep. Brennan noted that the legislation is especially important for seniors on fixed incomes, working families whose wages have not kept pace with rising housing costs, and renters who often pay higher rents as landlords pass along increased property tax costs.

HB 365 has been referred to the House Ways and Means Committee for consideration.