Columbus — The Ohio House Ways and Means Committee on June 18 voted 9-4 to adopt a substitute amendment to House Bill 335, a large package intended to limit unvoted property tax growth and change how some local levies are calculated. Vice Chair Thomas moved the amendment, described to the committee as eliminating unvoted inside millage for counties, cities, villages and schools (with an exception for townships), raising certain park-district voted levy caps to 3 mills, and waiving the 20-mill school funding floor for two years.

Committee action came after roughly two hours of proponent, interested-party and opponent testimony from a broad cross-section of stakeholders, including tax-policy groups, county auditors and commissioners, municipal leaders, law-enforcement representatives and school officials. Opponents warned the committee the change would remove hundreds of millions — and potentially more than $3 billion statewide — in stable local revenue and could require immediate cuts to public-safety, education and local services unless replacement revenue or transition support is provided.

Why this matters: The substitute seeks to curb what supporters called “unvoted” increases that flow from property-value growth under Ohio’s current calculations; opponents said the sudden removal of inside millage would be disruptive to local governments that rely on that steady revenue. Proponents argued the proposal restores voter control and limits unexpected tax bill spikes tied to rising valuations.

What the substitute would do and how proponents described it
- Eliminate unvoted inside millage for counties, cities, villages and school districts except townships, according to the sponsor explanation. Supporters said that standardizing treatment of inside millage will curb inflationary, unvoted tax growth and increase transparency for voters.
- Increase the voted levy cap for some park districts to 3 mills so those districts can recoup revenue lost when inside millage is removed.
- Waive the 20-mill floor school funding requirement for two years so districts that fall below the floor after inside-millage elimination would not immediately lose eligibility for state funding tied to that floor.

“House Bill 335 is a comprehensive response,” said Hannah Cubbins of Americans for Prosperity, testifying as a proponent. Cubbins urged changes to prevent automatic local tax increases and increase transparency for property owners. Supporters also urged truth-in-taxation style notices and public hearings on adjustments that drive tax increases.

Concerns from local governments, public safety and schools
County auditors and commissioners — represented in testimony by Warren County Auditor Matt Nolan and Pickaway County Commissioner Gary Scherer — called the change the single largest defunding effort of county services in Ohio’s history and said counties could lose an estimated $850 million in inside-millage revenue. Nolan and Scherer urged the committee to prioritize fixes to the 20-mill floor calculation and to consider owner-occupied credits and other targeted relief before eliminating inside mills.

Police chiefs, municipal leaders and school administrators warned of short-term disruption. Robert Butler, chief of police in Independence and president of the Ohio Association of Chiefs of Police, told the committee the loss of inside millage would “remove more than $3,000,000,000 in stable predictable revenue from local governments and schools,” and that police and fire budgets — which constitute a large share of municipal general funds — would be particularly exposed. Mansfield Mayor Jody Perry and school representatives said their communities lack large carryover balances and would face staff reductions, fewer first responders and other cuts if replacement revenue were not provided.

Policy, legal and transition questions
Witnesses and committee members repeatedly raised bond and legal questions tied to pledged millage and bond covenants. Former tax officials and the Ohio Taxpayers Protection Coalition urged careful attention to bond holders and suggested delayed phase-outs or covenant-protection language to limit litigation risk. The coalition and other experts cited prior measures (for example, House Bill 920 in the 1970s and a 1987 budget change regarding emergency levies) to underscore how inside-millage rules have evolved and warned of complex downstream consequences.

Roll-call vote and committee procedure
Vice Chair Thomas moved the substitute (L_136_1566-1). After debate and an objection to the substitute, the committee recorded the following roll-call on the amendment: Chairman Romer — yes; Vice Chair Thomas — yes; Ranking Member Troy — no; Representative Clay — yes; Daniels — yes; Demetria — yes; Paul — no; Lear — yes; Richardson — yes; Rogers — no; Fantucci — yes; Seegrest — no; (the roll-call transcript identified 13 voting members with 9 votes to adopt and 4 opposing). By a 9-4 vote the substitute was adopted and will become part of the bill in committee.

What committee members and witnesses said they want next
Multiple witnesses urged the committee not to put the inside-millage elimination into the budget without more time for hearings and technical fixes. Suggestions included: capping future inflationary growth of inside mills rather than an immediate elimination; requiring local governments to comply with bond covenants or delaying elimination until bonds are satisfied; exempting certain levies; expanding homestead or circuit-breaker relief targeted to seniors and low-income residents; and providing a phased transition or temporary state backfill.

The committee took the action to adopt the substitute but did not complete markup or send the bill to the floor on June 18. Chairman Romer adjourned after receiving additional written testimony submitted for the record.

Ending: Committee members and witnesses agreed on the need for property tax reform; they diverged sharply on pace and method. Supporters pressed for immediate limits on unvoted inflationary growth; opponents warned of instant revenue shocks to policing, schools and local services and pushed for staged changes or targeted state assistance.