Representative Thomas provided sponsor testimony on substitute House Bill 335 to the Ohio Senate Local Government Committee, saying the measure applies the same inflation-cap philosophy to inside millage that sponsors proposed for 20-mill floor school districts in HB 186.

Thomas said HB 335 would limit automatic increases in inside millage — the base 10 mills applied across properties and split among county, municipal/city, township and school allocations — so that a local government’s unvoted revenue from inside mills could not grow above inflation without voter approval. “Your bill will not increase due to inside millage unless you voted for it,” Thomas told the committee.

Scope and mechanics

Sponsor testimony described inside millage as the source of unvoted spikes in jurisdictions that were not subject to the 20-mill floor; HB 335 would apply the cap to every local government in Ohio so that property-tax bills tied to inside millage would not spike after a revaluation. Thomas said the bill includes several amendments accepted in the House: entities (villages, cities, schools) may opt not to fully collect inside millage; if an entity chooses not to collect, the bill prevents the county budget commission from reallocating that inside millage to another local government; and new construction would be exempt from the cap so local governments still receive tax revenue tied to added development.

Sponsors told the committee some counties and cities already have taken voluntary steps. Thomas said Miami County had enacted a piggyback option in the budget to reduce inside millage for seniors and homeowners, and that Summit County had placed a measure similar to HB 335 on its ballot.

Questions and concerns

Committee members asked for estimates of average homeowner savings and posed questions about recession scenarios, reallocation of inside mills, and revenue stability. Thomas said the average savings would vary by property and that inside millage equals about 10 mills (roughly $350 on a $100,000 home and $700 on a $200,000 home) and that savings are proportional to valuation spikes. On recession concerns, Thomas said the budget commission retains statutory authority to adjust rates when values fall so revenue can be stabilized case-by-case.

Sponsors said HB 335 passed the House with bipartisan support and that they accepted amendments intended to protect taxpayers and local entities. No formal committee vote was recorded at the hearing; the sponsor answered questions and the hearing adjourned.

Ending

Chairwoman O’Brien closed the HB 335 hearing after committee questioning. Sponsors said HB 335 is part of a package of bills addressing different pieces of the property-tax system and urged swift consideration so affected taxpayers would see relief sooner rather than later.