Ohio Senate passes historic property tax reform returning control to local voters

The Ohio House of Representatives convened on June 25, 2025, to discuss significant reforms aimed at property tax management, responding to long-standing concerns from taxpayers. The proposed legislation represents the most substantial effort to reform property taxes since the crisis began in 2020, focusing on local control and voter accountability.

Key elements of the bill include capping cash carryover at 40%, which is expected to return hundreds of millions of dollars to taxpayers by lowering tax rates. This cap addresses the growth in cash reserves that has resulted from rising property taxes across the state. Additionally, the bill simplifies the voting process for property tax measures by eliminating replacement and emergency levies, allowing voters to directly decide on tax increases or maintenance of current rates.

The legislation also proposes lifting approximately 200 schools off the 20-mil floor, which guarantees a minimum tax rate, thereby granting local voters more authority over school funding decisions. Furthermore, an overhaul of the budget commission will empower local fiscal leaders to scrutinize budgets and tax rates, ensuring that tax increases are justified and necessary for essential services.

Another significant aspect of the reform mandates local entities to formally acknowledge when property tax revenues increase, prompting them to consider whether such increases are necessary. This measure aims to enhance taxpayer protection and accountability.

The bill also introduces provisions for local authorities to offer tax exemptions, particularly benefiting homeowners. Counties that opt into the expanded homestead and owner occupancy credits could potentially double the savings for property owners, with average savings estimated at $500 for traditional homestead owners and up to $1,000 for enhanced credits.

Overall, the proposed reforms are designed to provide greater transparency and control to local governments and voters, addressing the pressing concerns of Ohio taxpayers regarding property tax management. The House's actions signal a commitment to reforming the property tax system in a way that prioritizes the needs and voices of local communities.