Hamilton County staff briefed on state property-tax reforms that cap growth to inflation

Anson Turley, Hamilton County deputy assistant administrator, told the county's Jan. 13 staff meeting that four pieces of legislation signed Dec. 19, 2025, will change how local property-tax revenue grows and how levies are structured. The laws Turley summarized were House Bill 335, House Bill 186, House Bill 309 and House Bill 129.

Turley said HB 335 caps growth of "inside millage" (the local property-tax rate jurisdictions may levy without voter approval) to inflation rather than property-value growth, and that HB 186 applies a similar cap to school operating levies that sit on a 20-mill floor. He said HB 309 gives the county budget commission additional authority to implement and, if necessary, reduce millage so residents do not see sudden spikes; HB 129 allows future school levies to be written as fixed dollar amounts rather than a millage rate. Turley emphasized the laws "do not cut property taxes" already assessed; their purpose is to prevent the large year-over-year spikes some residents saw after the 2023 reappraisal.

Using county charts and staff analysis, Turley presented illustrative revenue effects: under a hypothetical HB 335 regime, the county would have received roughly $12.6 million less in both 2024 and 2025 and about $42.6 million less cumulatively from 2018 through 2025. He cautioned those figures are hypothetical, depend on future inflation and property-market movements, and do not alter bills already issued.

Commissioners pressed staff for timing and local effects. Turley said most provisions carry an effective date of March 18, 2026, while HB 186 took effect on signature. Vice President Reese and other commissioners stressed that while the bills aim to prevent spikes, they do not deliver immediate tax relief for homeowners who have already seen higher bills. Reese urged that staff make clear to constituents these are state laws and that county officials did not enact them.

Several commissioners asked whether the state could issue any emergency relief—Vice President Reese renewed a call for the governor to use executive authority to freeze senior property taxes temporarily—and expressed frustration that immediate assistance for homeowners was not included in the enacted package. Turley also flagged a grassroots group, Citizens for Property Tax Reform, which is collecting signatures for a ballot initiative to abolish property taxes; he said placing that measure on the ballot would require petitions and cross-county signatures and, if approved, would substantially affect county finances.

Next steps noted by staff included preparing clearer materials for residents about effective dates and impacts, running more detailed county revenue scenarios tied to inflation assumptions, and following petition activity for the constitutional amendment effort. No formal county action on the bills was taken at the meeting.