Ohio committee advances property-tax inflation cap, approves $360 million school backfill

The Ohio House Ways and Means Committee on March 1 voted to favorably report House Bill 186, a measure that would cap unvoted property tax growth to inflation beginning in tax year 2026 and provide a temporary state backfill for school districts until their next property revaluation.

Committee members approved an amendment (L_136_0063 -10) that retains the bill’s core inflation cap on so-called “second-half” tax bills while directing roughly $360,000,000 from the sales tax holiday fund to compensate school districts for lost property-tax revenue until each district’s next revaluation. Vice Chair Representative Thomas, who moved the amendment, said the change “keeps schools essentially full moving forward until their next revaluation.”

The committee’s action sends the bill to the Rules and Reference Committee; the committee vote to report the bill was 11–1.

Why it matters: House Bill 186 would limit growth in certain property tax bills to a rate tied to inflation starting in 2026, a policy change meant to prevent large, unvoted increases in…