 | Property tax reform continues to dominate legislative discussions in Columbus, with a series of bills moving quickly through the General Assembly. The Toledo Regional Chamber of Commerce supports efforts to ensure fairness and predictability in local taxation, we also remain focused on protecting the long-term stability of our schools and economic development efforts. Last week, four major pieces of property tax legislation — House Bills 129, 186, 309, and 335 — passed the Ohio Senate and will be sent to Governor DeWine for consideration. Each bill approaches reform differently, but all share a common goal: slowing rapid increases in property tax bills while seeking to maintain funding for essential local services. |
One of the biggest questions that come up when discussing property tax is “what is a mill”? A “mill” is one dollar of tax for every $1,000 of taxable (assessed) value of property.
HB129 — Clarifying the 20-Mill Floor & Expanding Use of Fixed-Sum Levies
House Bill 129 addresses how school districts calculate their 20-mill floor (and 2-mill floor for Joint Vocational School Districts) beginning in tax year 2026. The “floor” is a statutory minimum tax-rate threshold that applies to certain voted school-district levies. The bill includes fixed-sum levies—such as emergency and substitute levies—in that calculation and also authorizes districts to levy fixed-sum property taxes in limited circumstances, including fiscal distress or emergencies.
These fixed-sum levies may only be used for operating expenses and are limited to five years.
HB186 — Inflation Caps on Voted Levies
House Bill 186 would prevent certain school district levies operating at the 20-mill or 2-mill floor from growing faster than inflation over the prior three years. Property owners in impacted districts would receive an inflation-cap credit to offset taxes above the inflationary limit, and school districts would receive partial reimbursement for lost revenue. The bill also prohibits an expanded sales tax holiday from occurring in August 2026.
A key amendment significantly changes rollback provisions:
The rollbacks are applied to a qualifying levy, defined as one that was first approved by voters prior to the November 2013 general election.
HB309 — Expanding Local Oversight of Property Tax Collections
House Bill 309 focuses on the role of county budget commissions and aims to prevent excessive or unnecessary property tax collections. Under the bill, county elected officials may review and adjust certain property tax levies annually.
HB335 — Revenue Limits on Inside Millage During Reappraisal Years
House Bill 335 limits growth in property tax revenues from inside millage levies – those ten mills that can be levied by local governments without voter approval – by the gross domestic product (GDP) deflator over the preceding three years.
Next Steps
We encourage our members and the broader business community to stay informed as property tax legislation continues to evolve. As additional developments occur with legislation or other efforts, the Chamber will provide updates.
HB129 — Clarifying the 20-Mill Floor & Expanding Use of Fixed-Sum Levies
House Bill 129 addresses how school districts calculate their 20-mill floor (and 2-mill floor for Joint Vocational School Districts) beginning in tax year 2026. The “floor” is a statutory minimum tax-rate threshold that applies to certain voted school-district levies. The bill includes fixed-sum levies—such as emergency and substitute levies—in that calculation and also authorizes districts to levy fixed-sum property taxes in limited circumstances, including fiscal distress or emergencies.
These fixed-sum levies may only be used for operating expenses and are limited to five years.
HB186 — Inflation Caps on Voted Levies
House Bill 186 would prevent certain school district levies operating at the 20-mill or 2-mill floor from growing faster than inflation over the prior three years. Property owners in impacted districts would receive an inflation-cap credit to offset taxes above the inflationary limit, and school districts would receive partial reimbursement for lost revenue. The bill also prohibits an expanded sales tax holiday from occurring in August 2026.
A key amendment significantly changes rollback provisions:
- The 2.5% rollback for owner-occupied homes increases to 15.38% over four years
- The 10% rollback on nonbusiness residential property is phased out over four years
- Agricultural property continues to receive the full 10% rollback
The rollbacks are applied to a qualifying levy, defined as one that was first approved by voters prior to the November 2013 general election.
HB309 — Expanding Local Oversight of Property Tax Collections
House Bill 309 focuses on the role of county budget commissions and aims to prevent excessive or unnecessary property tax collections. Under the bill, county elected officials may review and adjust certain property tax levies annually.
HB335 — Revenue Limits on Inside Millage During Reappraisal Years
House Bill 335 limits growth in property tax revenues from inside millage levies – those ten mills that can be levied by local governments without voter approval – by the gross domestic product (GDP) deflator over the preceding three years.
Next Steps
We encourage our members and the broader business community to stay informed as property tax legislation continues to evolve. As additional developments occur with legislation or other efforts, the Chamber will provide updates.
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