Friends and Neighbors,
I'm pleased to provide an update with you on several pieces of legislation that work to help lower Ohioans' property taxes.
Just recently, I voted to concur on Senate amendments to House Bills 129, 309, 186, and 335 – four initiatives championed by House Republicans that work to curb spikes and provide direct property tax relief to Ohioans, totaling more than $3 billion in savings.
Ohioans deserve stability and predictability in their property tax bills. This legislation delivers meaningful relief for families, seniors, and homeowners across our state.
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 will help protect homeowners from surprise hikes in 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-occupancy tax credit, 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.
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 over the next four years.
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 the legislature 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.
As we move forward, if you ever have any questions about these pieces of legislation or other things I am working on in Columbus, please don't hesitate to reach out to my office.
Warm regards,
State Representative Monica Robb Blasdel
Rep79@ohiohouse.gov
614-466-8022
77 South High Street, Floor 11, Columbus OH, 43215
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