COLUMBUS, Ohio - The Ohio General Assembly recently passed a package of property-tax reform bills that the County Auditors’ Association of Ohio says will save homeowners more than $2 billion statewide. The legislation, which includes House Bills 186, 309, 335, and 129, was crafted with input from county auditors across the state and is now awaiting Governor Mike DeWine’s signature.

The push for legislative change was fueled by recent increases in property valuations across Ohio, which translated to higher taxes for many homeowners. Local auditors, including Mahoning County Auditor Ralph Meacham, had publicly called on state lawmakers to address the financial burden on residents, particularly those in the Mahoning Valley.

Meacham, who also serves as the Northeast District CAAO president, noted earlier this year that significant changes in home values over the last decade have made continued residence unaffordable for some homeowners. “Last year, Mahoning County was hit with a 38% increase in residential values,” Mr. Meacham told 21 News in April, elaborating that the problem required changes to tax policy. He and the CAAO presented legislative proposals to state lawmakers to jumpstart relief efforts.

The CAAO announced the measures are a significant step toward improving transparency and delivering relief to property owners. The key changes focus on capping the growth of certain local tax rates and shifting savings toward primary residences.

“The General Assembly just delivered a major change to Ohio’s property tax system,” said Matt Nolan, president of the CAAO. “Auditors are grateful that legislators took the time to understand the issues, challenges, and real-world application of these critical reforms and for working with county auditors to carefully craft these bills.”

House Bill 186 sets an Inflation Cap Credit to limit the growth of school district property taxes that do not require a public vote. This measure is intended to protect homeowners from steep and sudden tax increases. Additionally, the bill changes how existing credits are applied, providing greater savings for a homeowner’s primary residence while gradually removing a tax reduction on for-profit, non-agricultural properties.

Another bill, House Bill 335, also imposes an inflation cap on local government taxes that can be passed without voter approval, often referred to as “inside millage.” This requires county budget commissions to adjust these tax rates, so their growth does not exceed the rate of inflation.

To increase local transparency and control, House Bill 309 strengthens the authority of county budget commissions. It allows them to change or reduce local tax collections if they determine the funds are “unnecessary or excessive.”

Finally, House Bill 129 updates how various school taxes are counted toward an existing limit, known as the 20-mill floor. This aims to prevent unvoted tax spikes in school districts that have previously received unexpected revenue windfalls, an issue the Mahoning Valley auditor specifically highlighted as needing reform.

Lake County Auditor Chris Galloway, who served on the Governor’s Property Tax Reform Work Group alongside Mr. Nolan, stressed the importance of the changes.

“Taxpayers will see over $2 billion in tax savings as a result,” Mr. Galloway said. “Our members have traveled the state speaking to the media, public, and local officials about our plan for property tax reform. The General Assembly listened.”

The CAAO is now urging Governor DeWine to sign the bills into law to finalize the changes.