COLUMBUS — In a decisive move to ease the burden of rising property tax bills across Ohio, Gov. Mike DeWine on Friday, Dec. 19 signed into law a sweeping package of property tax reform bills projected to deliver more than $3 billion in savings for homeowners over the next several years.
The legislation — the most substantial overhaul of the state’s property tax code in decades — was approved by the General Assembly after months of negotiation and public pressure amid steep increases in home valuations and tax bills. DeWine, a Republican, characterized the reforms as a necessary response to “dramatic spikes” in real estate taxes that have strained household budgets.
“With the Governor’s signing of these five House bills, we’ve shown that when we pull together, real progress is possible for the people of Ohio. This marks the beginning of property tax reform, and there is still much more work to be done,” Logan County Auditor Jack Reser said.
Core Reforms and Legislative Changes
The package consists of five bills that collectively restructure how property taxes are calculated, limit future tax increases, and adjust long-standing credits and caps that shape local tax burdens. Key components include:
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Capping Growth in ‘Inside Millage’
House Bill 335 limits how much funding school districts can collect without a voter’s approval — a major driver of recent tax increases tied to rising property values. -
Limiting School District Tax Growth
House Bill 186 creates new tax credits that stop unvoted school district property taxes from growing faster than the rate of inflation — estimated to save property owners about $1.7 billion over three years. -
Adjusting the ‘20-Mill Floor’ Formula
House Bill 129 revises the guaranteed minimum tax rate calculation, leading to more equitable assessments. -
Empowering County Budget Commissions
House Bill 309 allows local budget commissions — auditors, treasurers, and prosecutors — to reduce millage rates when revenues exceed needs, even if prior levies were approved by voters. -
Reforming Property Valuation Challenges
House Bill 124 (the “Flip the Script Act”) shifts control of valuation sales selections to county auditors and alters the burden of proof when homeowners challenge property valuations.
Tax Credits and Homeowner Relief
A crucial part of the package includes major changes to homeowner tax credits. Currently, Ohio offers a 2.5 percent owner-occupancy tax credit and a 10 percent nonbusiness credit on many levies. Under the new law, the nonbusiness credit will be phased out (except for agricultural land), while the owner-occupancy credit will be increased, ultimately reaching 15.38 percent by the fourth year — surpassing the combined total of previous credits.
Once fully implemented, this change alone is expected to shave roughly $400 million annually from Ohioans’ property tax bills.
Impact on School Funding and Services
While the reforms are broadly popular with homeowners, critics — including some school officials — warn that limiting property tax revenue could strain public services that rely on local property taxes for funding. In areas with rapid property value growth, traditional funding mechanisms will change, and local governments may need to seek new levies for critical services like schools, police, and fire protection.
DeWine addressed these concerns at the signing ceremony, asserting that the state must balance relief for taxpayers with the need to fund essential services. He rejected proposals to fully abolish property taxes, saying doing so would force an unprecedented increase in other taxes such as the sales tax.
A Bipartisan, Long-Term Shift?
The legislative reforms passed with widespread support but also some bipartisan debate on the cost and structure of the relief. Republicans highlighted the benefits to homeowners, especially those on fixed incomes or in rapidly appreciating markets. Some Democrats expressed caution that the changes could unintentionally destabilize local funding streams without guaranteed replacements.
What Homeowners Can Expect
For the average homeowner, property tax bills could dip next year, with projections estimating yearly savings of around $128 on average. In some districts, especially those with higher valuations or historically above the old 20-mill floor, immediate reductions may be smaller — but future caps on growth aim to prevent sharp spikes going forward.
As Ohio moves into 2026 and beyond, implementation will be closely watched by homeowners, local officials, and taxpayers eager to gauge the effects on both their wallets and the services their property taxes support.
