House Advances Property Tax Reform Bills with Amendments
By Anastasia Kotkovskaya, Manager, Advocacy and Research
Two major property tax reform bills, HB 186 and HB 335 were voted out of the Ohio House this week after undergoing significant changes intended to balance tax relief with school and local government funding needs. Combined, these two proposals are expected to save Ohio’s taxpayers approximately $2.4 billion over the next three years!
HB 186: Inflation-Based
HB 186 would cap property tax growth to inflation for school districts at the 20-mill floor. Earlier changes made during the House committee process to apply the cap retroactively drew strong opposition from school districts, who cited potential revenue losses.
In response, lawmakers added a $360 million appropriation to hold schools harmless, using funds originally earmarked for the 2026 expanded sales tax holiday. Schools will receive payments in August 2026 and 2027 to match their 2024 tax revenue levels, and this will be administered by the Ohio Department of Education and Workforce. HB 186 is projected to save property owners an estimated $1.7 billion over the next three years.
Ohio REALTORS® previously testified as proponents of HB 186, supporting its goal of making the property tax system more predictable and transparent for homeowners, particularly following sharp valuation increases across the state.
HB 335: Inflation Cap on Inside Millage
HB 335 mirrors the inflation-based approach of HB 186 but focuses on inside millage collected by local governments. As amended, the bill would:
- Require county budget commission approval before reinstating inside millage that was previously reduced, especially if the jurisdiction saw increased funding from other sources.
- Exclude new construction and expired tax abatements from the inflationary cap, preserving room for natural revenue growth in expanding communities.
What This Means for Property Owners
These bills reflect a growing legislative focus on reining in unvoted property tax growth, especially in the wake of recent property reappraisals. By tying revenue increases to inflation, lawmakers aim to create more predictability for taxpayers while maintaining stability for schools and local services.
Ohio REALTORS® has long advocated for transparency, predictability, and balance in Ohio’s property tax system, and we will continue working with lawmakers to shape reforms that serve homeowners, communities, and housing markets across the state.
