On November 19, 2025, the General Assembly passed five bills (HB 124, HB 126, HB 186, HB 309, and HB 335) that will reduce funding for local governments, especially public schools. These bills are part of the General Assembly’s efforts at property tax reform.
Governor DeWine signed all five bills December 19, 2025 making them effective in the first quarter of 2026.
House Bill 124
HB 124 modifies how the Ohio Department of Taxation (DOT) and county auditors will determine property values during the sexennial appraisal and triennial update process. This process along with voters padding tax levies drive the increase in property taxes. The changes shift some authority from DOT to the county auditors thereby providing for more realistic property valuations.
Additionally, HB 124 puts in place timelines by which appeals to the Board of Tax Appeals must issue a decision.
House Bill 129
This bill limits school districts’ ability to see property tax revenue grow after the county has their reappraisal or triennial update of property values.
Currently when making the 20-mill floor calculation, certain types of levies known as fixed sum levies are excluded. HB 129 requires these levies be included in the calculation reducing the number of districts on the floor, thus reducing the number of districts seeing substantial growth connected to being at the 20-mill floor in the future.
The bill also limits the conditions under which a new fixed sum levy can be placed on the ballot in the future. The ability to pass a new fixed sum levy is limited to districts in fiscal caution, watch or emergency. A levy passed under this section will not be eligible for renewal. Districts that currently have a fixed sum levy (either emergency or substitute) will be able to renew the levy in the future but only for the amount previously generated and only one levy in each issue.
According to the Ohio Legislative Service Commission Fiscal Notes, school district revenue losses statewide are estimated to be approximately $162 million for tax year 2026, $223 million for tax year 2027, and $224 million for tax year 2028, as a result of this bill.
House Bill 186
This bill requires county auditors, when calculating property tax increases for property owners in school districts on the floor, to provide a tax credit to property tax owners limiting their tax increases to an inflationary increase as determined by the GDP.
The bill provides for tax credits to be awarded to taxpayers whose property went through reappraisals in tax years 2023 and 2024 and uses money from the state to fill any shortfall. The bill repeals the 10% property tax rollback from non-owner-occupied residential property and redirects that money to increase the owner-occupied rollback an additional 2.8% for a total of 15.38%. The rollback is a property tax reduction in which the property owner receives a percentage discount, and the general revenue fund reimburses that amount to the local jurisdiction.
House Bill 309
This bill permits county budget commissions (CBCs) to control levy rates of taxing authorities in their county by allowing CBCs to reduce the amount collected from voted passed levies. This applies not only to schools but also to public entities like libraries, townships, and aging boards who rely on property taxes to operate.
In the first year after the levy passes, the rate will remain unchanged thus providing the public entity with the income approved by the voters. After the first year, however, the CBC will not be required to assess the voter approved levy rate and may reduce it.
To make this decision, the CBCs are given the authority to determine whether a levy is "unnecessary" or “excessive” based on fund balances, projected spending, additional revenue services, and statutory service requirements. In the case of school districts, the CBCs are limited in that they cannot reduce a school district's rate below 20-mills unless the district requests it.
CBCs are now the sole authority for approving requests to go below the 20-mill floor. If they approve the request, the state cannot penalize the district that submitted it.
House Bill 335
This bill empowers CBCs to control the inside millage revenue in reappraisal years by using the GDP-based growth cap. This does not include outside or voted levies. This will reduce revenue to not only school districts but also counties and other local governments who receive a portion of this inside millage.
Those receiving inside millage can request voluntary reductions for a tax year should they believe it a prudent decision. Their inside millage in that year cannot be redistributed to other taxing entities receiving inside millage. According to the Ohio Legislative Service Commission Fiscal Notes, it is estimated that this bill will reduce revenue statewide by $120 million to $135 million in tax year 2026, $195 million to $250 million in tax year 2027, and $305 million to $378 million in tax year 2028.
Local Impact
While the bills will overall reduce funding available to local governments and in particular school districts, the amount of funding reduction will vary. Roetzel has a team of professionals that can assist any local government reviewing the impact of these bills on their particular school district.
Roetzel will continue to monitor and provide updates on property tax changes as the General Assembly will likely consider additional property tax bills when they return in 2026.