The Senate gave it unanimous approval and sent it to Ohio Gov. Mike DeWine on Wednesday.
Sen. Sandra O’Brien, R-Ashtabula, who chairs the Local Government Committee where it was vetted, said “this bill flips the script to allow county auditors to have the final say on properties included in sales assessment ratio data.”
“This bill will have a small but positive on property valuations and by extension property taxes,” she said before the floor vote.
O’Brien’s committee met after the Senate session to consider several other house bills that would save taxpayers roughly $2.4 billion over three years. Legislators have said they intend to get the measures passed before they break for Thanksgiving.
House Bill 186 — which caps most school district tax increases to the rate of inflation — that provides an estimated $1.7 billion in tax credit statewide to property owners over three years. The credits will appear on second half 2026 tax bills.
The 10th version of HB 186 also provides a temporary $465 million offset over two years to school districts — keeping revenues steady at 2024 levels — using expanded state sales tax holiday funds.
House Bill 335 is also under review, it would save an estimated $620 million to $763 million over three years by capping inside millage to the gross domestic product (GDP) deflator.
Counties, cities, townships, villages and schools all share up to 10-mills of what is called inside millage. Revenue from that source grows with value spikes and isn’t impacted by the 20-mill floor factor, so everyone will benefit from the inflation cap.
Greg Lawson, research fellow with the Buckeye Institute backed HB 186 in written testimony, saying it “is one of the most significant property tax reform legislation since House Bill 920 passed in 1976″ but noted more work is needed.
“This bold departure from the status quo will immediately save Ohio taxpayers money and schools that forego property tax revenue will be made whole with funds set aside for Ohio’s expanded sales tax holiday,” Lawson wrote. “The Buckeye Institute continues to urge policymakers to ease property tax burdens by streamlining Ohio’s local government structure of more than 600 school districts and thousands of taxing entities.”
About the Author