by COLUMBUS, Ohio – Ohio lawmakers have passed a sweeping set of property tax reforms that could transform the way millions of residents are taxed in the coming years. The measures are designed to ease rising tax burdens, adjust school funding formulas, and give local officials more control over how levies are collected.
Legislative Package Heads to Governor
This week, the Ohio House and Senate approved a four-bill package that now awaits Governor Mike DeWine’s signature. The reforms follow recommendations from a state working group tasked with addressing the state’s high property tax bills, which ultimately provided 20 recommendations rather than a single solution.
The bills aim to adjust how tax rates respond when property values increase and provide counties with tools to manage automatic revenue growth, ensuring homeowners are not disproportionately affected by rising assessments.
Key Provisions in the Tax Reform Bills
House Bill 186: Owner-Occupancy Tax Credit
House Bill 186 gradually expands the owner-occupancy tax credit over the next four years. This credit provides additional relief to homeowners who reside in their properties, lowering the financial impact of rising property taxes.
House Bill 129: School Funding Adjustments
House Bill 129 changes the way the state calculates the “20-mill floor” used in school funding. A mill is a unit for calculating property taxes, equivalent to one-tenth of a penny per dollar of assessed value.
Under the previous system, homeowners in districts operating at the 20-mill minimum could face automatic tax increases when property values rose. The updated formula is designed to slow those increases, reducing unexpected tax burdens for homeowners in some areas.
House Bill 335: Limits on Inside Millage
House Bill 335 reduces revenue generated through “inside millage”, which is the portion of property taxes local governments can collect without voter approval. Previously, these charges could rise automatically with property values, even if voters had not endorsed higher rates. The bill aims to limit automatic increases, giving residents more predictable tax bills.
House Bill 309: County Levy Controls
Under House Bill 309, county budget commissions can scale back a levy’s tax rate if it produces more revenue than local leaders deem necessary. This measure is intended to prevent overcollection and ensure property taxes remain fair and proportional.
Projected Savings for Ohio Residents
According to Cleveland.com, property owners across Ohio are projected to save $2 billion over three years once the full set of reforms is implemented. Lawmakers say the package represents a significant step toward addressing growing concerns about property tax affordability in the state.
Community Impact
Homeowners and local officials alike are expected to benefit from the reforms, with more predictable tax bills and greater control over local revenues. By curbing automatic increases and expanding tax credits, the legislation aims to make property ownership more sustainable for Ohio residents.
What do you think about Ohio’s new property tax reforms? Will these changes make a real difference for homeowners in your area? Share your thoughts in the comments below!
