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Committee backs amendment to cap inside-millage growth after revaluations; mechanics and exceptions still unresolved
Summary
The House Ways and Means Committee accepted a substitute amendment to House Bill 335 that would cap unvoted inside-millage revenue growth after revaluations (example: a 3% cap held for the revaluation period); members sought clearer drafting on how the cap applies to debt service and whether the percentage should match inflation.
The House Ways and Means Committee on Thursday advanced amended language for House Bill 335 that would limit sharp, unvoted spikes in revenue derived from inside millage after property revaluations.
Vice Chair Representative Thomas presented a substitute amendment that, he said, would prevent sudden jumps in inside-millage receipts by capping permitted increases after a revaluation. Using a simple example, Thomas described a township that would otherwise see its inside-millage revenue rise from $100,000 to $130,000 (a 30% jump); under the amendment the budget commission would instead allow a 3% increase to $103,000 and that capped amount would remain in place for the revaluation period.
Gary Shearer, Pickaway County Commissioner and former member of the Governor’s Property Tax Commission, told the committee CCAO supports limiting growth tied to a reappraisal and prefers an inflation-based cap (the association seeks 3% or inflation-based drafting), but warned the bill language needed clarification because some drafters read it as imposing a smaller 1% annual limit.
Why this matters: Inside millage funds a range of local services; committee members expressed concern that a hard cap could unintentionally constrain debt-service plans and police and fire pension obligations unless limited exceptions or clarifying mechanics are drafted.
Key details
- Mechanics as explained: The suggested cap would limit permitted unvoted inside-millage revenue increases after a revaluation to a fixed percentage (example used: 3%), and that capped figure would hold across the revaluation years rather than allowing multi-year compounding of a single spike.
- Debt and pension concerns: Members asked whether the cap could affect entities that rely on inside-millage revenue pledged for debt-service schedules or pension payments; sponsors said the purpose is to reduce wild spikes while preserving predictable pledged revenue and agreed to refine drafting to address amortization schedules and limited exceptions.
- Process: The amendment was accepted without a recorded roll-call vote; testimony included support from county commissioners and a desire to continue technical negotiations with the bill sponsor prior to a future vote.
Next steps: Sponsors and stakeholders agreed to refine language on the percent basis, timing and exceptions for debt-service obligations and to supply additional technical drafting for the committee to review.
