Gov. Mike DeWine finalized the end of the first year of the two-year legislative session by signing the bills on his desk. That includes a package of four bills that seek to cap property tax increases, change the formula by which a school district’s guaranteed minimum tax rate is calculated and allow county budget commissions to reduce millage of property tax levies.
“With the signing of these bills, no longer will families see dramatic spikes in their real estate taxes. And except for new levies are passed, families will experience increases in property taxes that will be limited, that will be limited to the cost of living increase," DeWine said at a press conference.
DeWine said the bills will stop dramatic spikes in real estate taxes. One bill also allows for a tax credit for those who live in the homes they own, which the state will take care of so schools and local entities don’t lose that money.
“This will be achieved by providing payments to the school district from unused funding that was appropriate for the expanded sales tax holiday," DeWine said."This will amount to $306 million in fiscal year 2026, 105 million in fiscal year two 2027.”
DeWine signed these four bills:
- House Bill 335, which would cap the growth of increases on the funding that can be levied without a vote, known as inside millage
- House Bill 186, which would cap property tax revenue growth for districts at the guaranteed minimum funding rate known as the 20 mill floor
- House Bill 129, which would revise the formula to come up with the 20 mill floor guaranteed minimum rate
- House Bill 309, which would allow county budget commissions to reduce millage of property tax levies
Schools were supportive of the changes made to the bills, especially HB 335. That bill had initially banned inside millage, which districts has said could result in the loss of almost 20,000 teachers, or nearly 20% of the K-12 education workforce.
Republicans said the bills would bring $2 billion in tax relief, but
admitted they wouldn’t slash taxpayers’ bills. Democrats were mixed in their support. The bills passed with widespread bipartisan support though the bills aren’t expected to slash property taxes dramatically.
These bills were signed at the same time as another bill putting restrictions on legal marijuana and intoxicating hemp, and a measure to eliminate the four-day grace period for absentee ballots to arrive at boards of elections, requiring those mailed ballots to be in house no later than election day.
