The Ohio House of Representatives on Wednesday passed two bills aimed at limiting future property tax increases by tying them to inflation — marking the latest in a series of efforts to curb rising property taxes across the state.
Republican House Speaker Matt Huffman said the legislation represents “something significant” for Ohio taxpayers. He estimates the measures could save residents about $2.4 billion — or roughly 10% of the total property taxes collected statewide, the Ohio Capital Journal reported.
“I think this should convince a reasonable voter, a reasonable citizen in Ohio, that something significant has been done,” Huffman said after the vote.
Rising property taxes have sparked fierce recent debate among Ohio lawmakers and citizens.
That discourse has included proposals to do away with property taxes entirely, with similar talks talking place in Florida.
Bill specifics
The two measures — House Bill 186 and House Bill 335 — address what are known as outside and inside millage.
Under the state constitution, counties can levy up to 10 mills, or 1%, in property taxes without voter approval (inside millage). Any taxes beyond that must go before voters (outside millage).
H.B. 186 would cap revenue growth from outside millage at the rate of inflation. Lawmakers adjusted the bill after pushback from schools concerned about funding losses.
“What they’re actually losing in terms of less property tax revenue, we backfill that amount to the tune of roughly $360 million from the sales tax holiday fund,” said Rep. David Thomas (R), the bill’s sponsor. “To keep schools essentially full moving forward until their next revaluation.”
H.B. 335, which deals with inside millage, allows counties to replace property tax revenue with local income taxes — expanding an option previously limited to local sales taxes.
Thomas said safeguards were added to prevent local governments from cutting millage only to restore it later after raising other taxes.
‘Like pouring a cup of water on a forest fire’
On the House floor, supporters argued the reforms were needed to protect homeowners from steep tax hikes linked to rising property values.
“People are upset with the spikes,” Rep. Bill Roemer (R) said. “We don’t want the spikes — 20%, 30%, 40%, 50% increases — when people’s Social Security might be increasing at 2.9%.”
House Democrat Daniel Troy argued that the measures would not prevent calls for a broader constitutional overhaul of property taxes, calling the legislation “like pouring a cup of water on a forest fire.”
Some Republicans also voiced caution. Rep. Mike Odioso said one district in his area could still face a $1.5 million shortfall over two years, even with the state backfill.
Thomas defended the bills as a permanent fix to volatile tax increases — estimating that homeowners would otherwise pay $1.7 billion more in property taxes over the next three years.
“If your bill spiked, it will never spike again,” he said.
