General Assembly passes major property-tax reforms

The County Auditors Association of Ohio is commending the Ohio General Assembly for passing House Bills 186, 309, 335 and 129, legislation that delivers what the association calls the most significant property-tax reform package in state history. The reforms are projected to save Ohio homeowners more than $2 billion.

Auditors across the state worked closely with lawmakers throughout the drafting process, offering data, analysis and real-world input to shape the final legislation.

“The General Assembly just delivered the largest property tax reform in Ohio history. I’m proud that they overwhelmingly voted in favor of the recommendations of the County Auditors Association of Ohio,” said CAAO President Matt Nolan. “Auditors are grateful that legislators took the time to understand the issues, challenges and real-world application of these critical reforms and for working with county auditors to carefully craft these bills.”

Chris Galloway, Lake County auditor and CAAO member, echoed that sentiment.

“County auditors have worked for over two years on these reforms. Our members have traveled the state speaking to the media, public and local officials about our plan for property-tax reform. The General Assembly listened,” Galloway said. “Taxpayers will see over $2 billion in tax savings as a result.”

Nolan and Galloway also served on the governor’s Property Tax Reform Work Group.

The association urged Gov. Mike DeWine to sign the bills into law.

Key provisions of the legislation

—House Bill 186 creates an Inflation Cap Credit that limits growth of unvoted school-district millage, known as the 20-mill floor, to the rate of inflation. The bill also expands the Owner-Occupancy Credit over four years while phasing out the Non-Business Credit on non-agricultural properties. 

—House Bill 335 imposes an inflation cap on inside millage, requiring county budget commissions to adjust levies so that revenue growth does not exceed inflation. 

—House Bill 129 reforms school-funding calculations by including certain special levies in the 20-mill floor, helping prevent unvoted spikes that have occurred in some districts. 

—House Bill 309 strengthens the authority of county budget commissions to modify or reduce levies they deem unnecessary or excessive, increasing local control and transparency.

Harrison County auditor responds to reforms

Harrison County Auditor Clint Barr said he is cautiously optimistic about the changes.

“These are conversations that need to be had and are finally happening, and you can see changes are coming,” Barr said.

Barr highlighted a major shift in how schools can apply unvoted levy increases. Under HB 186 and HB 129, unvoted levy increases will be limited to the rate of inflation unless school districts put them on the ballot for voter approval.

Another significant change, Barr said, comes from HB 309, which places more responsibility on county budget commissions. Harrison County’s budget commission includes Barr, Prosecutor Lauren Knight and Treasurer Vickie Sefsick.

“They’re trying to throw it back on us as the budget commission,” Barr said, noting that the state is shifting decisions about levy reductions or limits to the local level. “I think they’re going to keep pushing it back to the county level rather than the state level. They want us to say unnecessary or excessive.”

Barr said he expects the state to provide guidance on what constitutes “excessive” or “unnecessary” levy collections.

“They try to make it a level playing field across the state,” he said. “All the auditors will kind of do things the same way.”

Barr also addressed the Axe the Tax movement and said he believes the effort oversimplifies the issue.

“It’s short-sighted,” he said, expressing concern about the impact on funding for schools, EMS, fire service, libraries and other essential services. Still, he sees progress in the current reforms. “There’s some good things happening here. It’s not a fix, but it’s definitely a step in the right direction. I think, hopefully, things will continue in this direction and alleviate the strain on voters.”

Barr encouraged residents to be fully informed if the Axe the Tax initiative reaches the ballot.