Ohio House Concurs on Slate of Property Tax Reform Bills

The Ohio House of Representatives today voted to concur on Senate amendments to House Bills 129, 309, 186, and 335 – four initiatives championed by House Republicans that make systematic reforms to curb spikes and provide direct property tax relief to Ohioans, totaling more than $2.4 billion in savings. The package of bills now goes to the Governor’s desk for his signature.

“Through this package of bills, Ohioans will begin to see real and direct relief from rising property taxes,” said Speaker of the Ohio House Matt Huffman (R-Lima). “I commend members of the House and Senate for working together to get these bills across the finish line and to the Governor. 

“This is the most sweeping property tax reform Ohio has seen in at least half a century,” said Bill Roemer (R-Richfield), Chairman of the House Ways and Means Committee. “By working together across chambers on a bipartisan basis, we’ve delivered real, lasting solutions that will protect families from dramatic spikes and restore fairness and predictability to property taxes across the Buckeye State.”

“These four bills work to prevent the unvoted property tax spikes that have happened the last five years from ever occurring again and gives the power back to the voters,” said State Representative David Thomas (R-Jefferson), Vice Chair of the House Ways and Means Committee. “The goal here is to ensure that unvoted tax increases do not happen again.” 

STOP THE SPIKES - 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 property taxes from exceeding the rate of inflation. The initiative also includes an appropriation holding Ohio school districts harmless for actual losses over this appraisal period compared to their current property tax collections, which will help schools that are not up for reappraisal or reevaluation this year offset any actual revenue losses.

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

Members of the House also approved changes in the bill that would update the owner-occupied tax credit program, a move that will provide more than $800 million in relief to Ohio homeowners over the next four years by phasing out the nonbusiness credit – except for agricultural property owners – and expanding the owner-occupancy tax credit.

STOP THE SPIKES - Inside Millage Inflation Cap 

House Bill 335 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. 

A CHECK ON TAX HIKES 

House Bill 129 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 and slowing tax spikes. This measure ultimately lifts 237 districts off the 20-mill floor.

The bill also provides a new alternative levy option. School districts with an existing emergency or substitute levy may renew these levies indefinitely as a “fixed sum levy.” The bill also allows schools on fiscal distress, as designated by the Auditor of State, or under a disaster declaration to levy a new one-time 5-year “fixed sum levy” to cover current expenses. These options provide additional flexibility for school districts.

MINIMIZING UNNECESSARY COLLECTIONS 

House Bill 309 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.  

This package builds on the legislative work already accomplished by House Republicans to address property tax hikes in Ohio, including the state operating budget, which included multiple property tax reform provisions. 

House Bills 129, 186, 309, and 335 will now go to Ohio Governor Mike DeWine for his signature, the final step before becoming law.