COLUMBUS, Ohio - Gov. Mike DeWine is scheduled to sign a package of five bills this afternoon intended to overhaul Ohio’s property tax system. State lawmakers and local officials describe the move as a major shift in how the state manages rising home values and the tax bills that follow them.

The legislative package, which includes House Bills 124, 129, 186, 309, and 335, is expected to reduce the financial burden on taxpayers by more than $2 billion over the next three years. The changes come as state leaders face increasing pressure from the public to address the cost of living. The pressure includes a separate, ongoing effort by some residents to pass a constitutional amendment that would eliminate property taxes in Ohio entirely.

While the governor’s new legislation focuses on reform, the proposed amendment, titled “Abolishment of Taxes on Real Property,” seeks a more drastic path. In May 2025, the Ohio Attorney General’s Office accepted the petition title and summary for that proposal, certifying that the language was a fair and truthful representation of the amendment's goal.

The group behind the amendment, the Committee to Abolish Property Taxes, is currently in the signature-gathering phase. To place the issue on the November 2026 ballot, organizers must collect 413,488 valid signatures from registered voters across at least 44 of Ohio's 88 counties. As of late 2025, organizers have reported collecting well over 100,000 signatures. They have until July 1, 2026, to submit the full amount to the Ohio Secretary of State’s Office.

In the meantime, the bills being signed by DeWine aim to provide immediate relief under the existing system. One of the primary goals of the new laws is to provide more control to local officials. Under House Bill 124, also known as the "Flip the Script" Act, the responsibility for collecting and analyzing sales data will shift from state officials to county auditors. Supporters of the bill argue that local auditors have a better understanding of their specific housing markets than state agencies in Columbus.

A major concern for Ohioans has been "unvoted" tax increases, which happen when home values go up, causing tax bills to rise even if voters did not approve a new tax rate. Several bills in this package address this issue by creating caps based on inflation.

House Bill 335 and House Bill 186 apply these inflation caps to different parts of a tax bill. House Bill 335 focuses on "inside millage," which is the portion of property tax that local governments can collect without a vote from the public. House Bill 186 applies a similar logic to school district taxes. If property values grow faster than the rate of inflation, these laws will trigger tax credits for homeowners. These credits act as a buffer, ensuring that a person’s tax bill does not skyrocket simply because the housing market is active.

The package also changes how school funding is calculated. House Bill 129 updates the "20-mill floor" rule. Previously, certain types of school levies were not counted toward a district's minimum funding level. By including emergency and substitute levies in this calculation, many school districts will be moved off the "floor." This technical change is important because it prevents the automatic tax increases that occur when a district hits that minimum funding limit.

Local oversight is also being strengthened through House Bill 309. This law gives more power to county budget commissions, which are made up of the county auditor, treasurer, and prosecutor. If a specific tax levy is collecting more money than is needed to fund its intended purpose, the commission now has the authority to reduce the tax rate. This is designed to prevent local governments from accumulating excessive cash reserves at the expense of the taxpayer.

The most visible change for residents will be a shift in who receives state tax credits. The state is phasing out the "nonbusiness" tax credit for rental and commercial properties and moving those funds to the "Owner-Occupancy Tax Credit." By the time this change is fully implemented, the credit for people living in their own homes will increase to 15.38%. This reallocation is expected to save homeowners about $400 million every year.

The push for these reforms gained momentum earlier this year when county auditors from across Northeast Ohio met to propose solutions for taxpayers.

Once DeWine signs the bills, the various provisions will go into effect over the coming months and years. State officials say the $2 billion in projected savings represents a significant return of funds to the public while the citizen-led movement to abolish property taxes continues to gain signatures for the 2026 election.