House limits automatic ‘inside millage’ increases, allows local opt-outs
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Summary
The Ohio House passed House Bill 335 on Oct. 21, 2025, capping growth in inside millage levies to the rate of inflation and allowing taxing units to surrender inside millage; the bill passed 71-24 after debate about the scale of relief to homeowners and local services.
Columbus — The Ohio House passed House Bill 335 on Oct. 21, 2025, a measure that limits revenue increases from inside millage levies to a rate tied to inflation, permits taxing districts to reduce or surrender inside millage, and requires county budget commission approval for some reductions. The chamber recorded 71 affirmative votes and 24 negative votes on final passage.
Backers said the bill protects taxpayers from unvoted, steep tax increases that occurred after recent reappraisals. Representative Romer, speaking to the measure, said “limits the rate of increase on inside millage taxation to the rate of inflation,” and characterized the bill as part of a broader property-tax reform package accompanying House Bill 186.
What the bill changes: Inside millage is the portion of property-tax levies that can be set by taxing districts without voter approval up to existing statutory limits. The legislation ties the allowable annual increase in inside millage revenue to a measure of inflation (the GDP deflator as amended on the floor), prohibits entities from claiming surrendered millage, and requires county budget commission oversight when inside millage reductions accompany county sales-tax levies.
Debate highlights: Supporters framed HB 335 as a necessary check on unvoted tax growth. Representative Thomas and others pointed to counties that voluntarily reduced rates as examples of restraint and urged a statutory rule to apply statewide.
Opponents described the measure as too modest, saying average homeowners would see minimal relief. Representative Piccolantonio, who voted no, said the measure “is not targeted and meaningful tax relief” and noted the median Ohio taxpayer under the bill would see about $2 per month less of future tax increases. Representative Brennan offered an amendment to double the homestead exemption for seniors, which proponents said would provide immediate, targeted relief; that amendment was laid on the table by a 60-33 vote.
Outcome and next steps: The bill passed the House by recorded vote, 71-24. Sponsors said HB 335 complements other property-tax legislation and will require follow-up actions, including possible county-level decisions and additional state measures to address targeted relief for seniors and low-income homeowners.
Context: Members said the reforms are one part of a multi-bill response to property-value spikes, along with HB 186’s cap on unvoted increases tied to the 20-mill floor. Several speakers urged the Legislature to increase state funding for schools and local governments to reduce reliance on property-tax revenue.
Ending note: Lawmakers characterized HB 335 as a structural change to reduce the chance of future sudden tax spikes while noting the work to craft targeted relief is ongoing.
