Ohio House passes property tax reform expected to save $2B over three years

Ohio House Republicans have advanced significant legislation aimed at reducing property taxes by more than $2 billion over the next three years, primarily through House Bills 186 and 335. These bills cap increases in school district property taxes and local government levies to the rate of inflation, targeting unvoted tax hikes and property tax spikes caused by soaring property values. While proponents argue the reforms will provide direct tax relief to homeowners, particularly in less populated areas, opponents caution that public schools and local governments could face funding shortfalls nearing $2 billion. The legislation follows a year-long debate and builds on earlier measures empowering local authorities to roll back levies and improve tax rate transparency. The bills now move to the Ohio Senate, with the next step being approval by Governor Mike DeWine, who previously vetoed property tax measures included in the state budget. Overall, the reforms represent the most significant overhaul of Ohio’s property tax system in decades, aiming to balance taxpayer relief with the fiscal needs of public services.