Hoops, Thomas Champion Effort Delivering $1.7 Billion in Property Tax Relief

The Ohio House Ways and Means Committee today adopted Substitute House Bill 186 – a bold initiative championed by members of the House Majority Caucus aimed at tackling rising property taxes that, once enacted, will save Ohio homeowners nearly $1.7 billion over the next three years.

Sponsored by State Representatives Jim Hoops (R-Napoleon) and David Thomas (R-Jefferson) – both former county auditors – the bill provides long-term property relief to homeowners by implementing the Inflation Cap Credit, a mechanism that limits how much additional revenue school districts can receive if they are at the 20-mill floor. This also applies to JVSDs at their 2-mill floor. 

“This stronger version of HB 186 to not only limit future unvoted spikes in property taxes but also provide a decrease in bills for homeowners in 20-mill floor schools is vital to our effort to help taxpayers,” said Rep. Thomas. “We should all be able to agree that spikes in unvoted property taxes are bad and limits in future growth are reasonable." 

“The citizens of Ohio are asking for property tax reform,” said Rep. Hoops. “I feel HB 186 develops a process that will deal with this issue in a responsible manner.”

The Inflation Cap Credit triggers savings for every eligible taxpayer, across all 88 counties on tax bills slated for the second half of 2026.  By the end of 2027, this credit will have achieved meaningful taxpayer savings amounting to $1.7 billion.

Current Law 
Under current law, every school district in Ohio is guaranteed to receive 20 mills or 2% of their district’s property value in taxes. Districts are protected from falling below 20 mills of local revenue, known as the “20-mill floor.”

Nearly 500 Ohio school districts have reached the 20-mill floor today, which, when joined with significantly rising home values, causes a spike in property taxes that, unlike a levy, go into effect without a vote by taxpayers authorizing the increase. 

The 20-mill floor is one of the major culprits for spikes in unvoted property taxes across Ohio over the past several years as values have increased and more schools fall to the 20-mill floor. 

Inflation Cap Credit
House Bill 186 caps the increase in unvoted tax revenue at the rate of inflation for schools that have reached the 20-mill floor and JVSDs that have reached the 2-mill floor by establishing a new Inflation Cap Credit that prevents tax bills from exceeding the rate of inflation. 

The Inflation Cap Credit is calculated for eligible property owners after each sexennial reappraisal or triennial update. That credit remains in place until the county undergoes its next reappraisal or update, at which point the credit is recalculated.  For purposes of its implementation, Sub. House Bill 186 provides this credit to all eligible homeowners statewide, rather than only those whose county is currently undergoing a reappraisal or update.  This ensures that residents of all 88 Ohio counties will benefit from enactment of this bill at the same time.

The Inflation Cap Credit applies to residential and agricultural property, except lakes and ponds, and business and industrial property, excluding vacant land.

Effect on Ohio Schools
House Bill 186 does not remove the ability for schools to receive additional tax revenue as property values increase over time. Rather, it simply ensures that taxpayers are protected from property tax hikes caused by valuation spikes and to their local districts’ position on the 20-mill floor. 

School districts will still receive an increase in revenue when they are on the 20-mill floor based on the growth of inflation, rather than the unprecedented amount generated to abnormally high housing values.  Districts may also continue to seek new tax levies as necessary to meet their expenses.

House Bill 186 was introduced earlier this year; however, the legislators have been working since November 2024 on the measure. The most updated sub. bill included a major modification that made the credit applicable to properties all over the state rather than just those in counties that are undergoing a reappraisal or triennial update in tax year 2025.