Ohio House passes two property tax measures to deliver relief, increase transparency

The Ohio House has passed two measures that proponents said will provide property tax relief and increased transparency for taxpayers, but lawmakers’ work addressing the state’s property tax crisis probably isn’t done.

House Bill 186 caps school district property tax increases at the rate of inflation, which aims to halt unexpected spikes and add predictability for property owners, particularly those living in a district on the 20-mill floor. The floor guarantees that school districts receive a certain level of property tax revenue.

“Families should not be blindsided by skyrocketing property tax bills due to inflationary spikes they can’t control,” state Rep. Michelle Teska, R- Clearcreek Township, said in a release. “HB 186 provides meaningful, fair, and responsible relief.”

House Bill 335, the Property Tax Relief Now Act, eliminates inside millage increases without voter approval. It mandates that during counties’ sexennial reappraisal or triennial updates, a county budget commission modify the rate of inside millage levies so that they do not increase by more than the sum of the three previous years’ inflation.

“House Bill 335 continues our commitment to stopping unpredictable spikes in property taxes,” Teska added. “These measures are about stability, predictability, and protecting Ohio homeowners—especially seniors and families living on fixed incomes.”

Combined, proponents said the measures should save Ohioans more than $2.4 billion. In a statement, Americans for Prosperity–Ohio State Director Donovan O’Neil said the “vote marks an important win for Ohio families.”

“Lawmakers are responding to what taxpayers have been saying for years: property tax reform must be simple, transparent, and fair,” O’Neil said. “By advancing these bills, the House is putting Ohioans back in control of their own tax bills.

“We appreciate the leadership it took to move these reforms forward,” O’Neil added. “The Senate now has an opportunity to finish the job and make Ohio a model for responsible, voter-driven tax policy.”

The move comes amid growing concerns about skyrocketing property taxes in the Buckeye State. A working group appointed by Republican Gov. Mike DeWine made 20 recommendations for lawmakers to consider, including passing House Bill 186.

“This is the greatest compilation of property tax reform in the last 50 years or maybe longer,” state Rep. Bill Roemer, R-Richfield, told The Statehouse News Bureau. “The thing that we hear most from our constituents is not ‘I don’t think I should be paying property taxes at all.’ There are definitely people that say that. But most of what people say is ‘we think that we can’t afford those massive spikes.’”

In a release, state Rep. David Thomas, R-Jefferson, said the limits in House Bill 186 take effect in the second half of next year on eligible properties in school districts on the 20-mill floor.

“We put a check on unlimited government with H.B. 186,” Thomas said in a release. “Currently there is no limit to what schools can take from the property owner. That is over, and what happened over the last 5 years will never happen again.

“Government should not take more than inflation without a vote of the people,” Thomas added. “H.B. 186 would put that into law and won’t wait to start those limits.”

While lawmakers lauded themselves for advancing legislation, they acknowledged during a House Ways and Means Committee meeting this week that neither measure is a “silver bullet.”

“Taken together, House Bill 186 and House Bill 335 will help rein in unvoted property tax increases as The Buckeye Institute recommended,” Greg R. Lawson, a research fellow at The Buckeye Institute, said in a statement. “While there remains more to do to reform Ohio’s expensive system of local government and protect Ohioans from spiking property taxes, the adoption of the policies in House Bill 186 and House Bill 335 is another step in the right direction, and The Buckeye Institute stands ready to work with lawmakers in the Ohio Senate to make these policies law.”