NW Ohio Times

The Ohio House Ways and Means Committee has approved Substitute House Bill 186, a legislative measure designed to address rising property taxes for homeowners across the state. The bill is expected to save Ohio homeowners nearly $1.7 billion over the next three years.

State Representatives Jim Hoops (R-Napoleon) and David Thomas (R-Jefferson), both of whom are former county auditors, sponsored the legislation. The central feature of the bill is the Inflation Cap Credit, which limits how much additional revenue school districts can receive if they are at the 20-mill floor—a minimum threshold for local tax revenue from property values set by current law. This mechanism also applies to Joint Vocational School Districts (JVSDs) at their 2-mill floor.

“This stronger version of HB 186 to not only limit future unvoted spikes in property taxes but also provide a decrease in bills for homeowners in 20-mill floor schools is vital to our effort to help taxpayers,” said Rep. Thomas. “We should all be able to agree that spikes in unvoted property taxes are bad and limits in future growth are reasonable."

“The citizens of Ohio are asking for property tax reform,” said Rep. Hoops. “I feel HB 186 develops a process that will deal with this issue in a responsible manner.”

The Inflation Cap Credit will apply to every eligible taxpayer across all 88 counties starting with tax bills issued for the second half of 2026. By the end of 2027, lawmakers expect cumulative savings for taxpayers to reach $1.7 billion.

Under existing regulations, each school district is guaranteed a minimum amount of funding through local property taxes—known as the “20-mill floor”—which ensures districts receive at least 20 mills or 2% of their district’s property value in taxes. Nearly 500 school districts have reached this threshold, which has contributed to increases in property taxes as home values rise, often without voter approval.

House Bill 186 would cap increases in unvoted tax revenue at the rate of inflation for those districts already at these floors by creating an Inflation Cap Credit that keeps tax bills from exceeding inflation rates. The credit is recalculated after each six-year reappraisal or three-year update and will apply statewide so that residents in all counties benefit simultaneously.

The new credit applies to residential and agricultural properties—excluding lakes, ponds, business and industrial properties, and vacant land.

While the measure does not prevent school districts from receiving more revenue as property values increase, it restricts such growth to align with inflation rather than allowing sharp hikes due to surging home values. Districts retain the option to seek new levies if additional funding is needed.

House Bill 186 was first introduced earlier this year following several months of development by legislators since November 2024. The latest revision expanded eligibility for the Inflation Cap Credit so it would cover properties statewide instead of limiting it only to counties undergoing reappraisal or updates during tax year 2025.