Committee advances bill to cap inside millage growth; advocates push targeted circuit-breaker instead

The Ohio House Ways and Means Committee favorably reported House Bill 335 on an 11-1 vote after accepting amendments that limit growth in inside millage, add oversight by county budget commissions, exclude certain new construction and abatements from the cap and expand options for entities to replace inside millage with other revenue subject to voter approval.

Why it matters: Inside millage—unvoted property-tax revenue available to local governments—amounted to nearly $4 billion statewide in tax year 2024, according to testimony. Committee amendments are intended to constrain automatic growth of that revenue while creating procedural checks when entities want to restore or increase inside millage receipts.

Testimony and key figures Zach Schiller, research director at Policy Matters Ohio, told the committee inside millage totaled nearly $4.0 billion in tax year 2024 and that roughly half of that went to school districts. Schiller said townships received about $457 million from inside millage in 2024 and that statewide inside millage grew from 2.61 (2018 base) to $3.96 billion in 2024 — a 52% increase over that period. He said a substitute version of House Bill 335 would have reduced inside millage by about $230 million annually by tax year 2024 using 2018 as the base.

Schiller urged the General Assembly to consider a targeted, state-funded circuit-breaker program rather than across-the-board caps. "A circuit breaker…says how much, at what point is somebody paying too much in property tax in relation to their income? And at that point, the state will pick up some or all of the rest," Schiller said, describing models used in other states and noting bills already filed in the legislature on that concept.

Major amendments accepted - County-budget-protection language: An amendment drafted to mirror existing county protections prevents one local entity from reducing inside millage and allowing another overlapping entity to claim that revenue without oversight; restoring or increasing inside millage would require approval or action involving the county budget commission.

- New-construction and abatements carve-out: An amendment offered by Representative Troy ensures that the cap on inside millage growth does not exclude revenue from new construction or revenue when tax abatements expire, preserving revenue to serve increased service demand from new development.

- Municipal/school swap option: Another amendment extends earlier municipal swap language to allow school districts to replace lost inside millage with a voter-approved increase in other taxes (for example, an income tax), with the county budget commission acting as an additional check if a district later seeks to restore inside millage.

Committee outcome and next steps Representative Thomas moved to report the bill favorably; the committee passed the motion by roll call (11 yes, 1 no). Members again asked the Legislative Service Commission to harmonize and engross the accepted amendments into the bill packet before further House action.

Quotes from the hearing "Inside millage amounted to nearly $4,000,000,000 in tax year 2024," Zach Schiller said in testimony for Policy Matters Ohio, adding that the growth in inside millage has real impacts on the ability of local governments to provide services.

"A circuit breaker…is paid for by the state. And so you're not harming school districts or counties or townships…You're providing property tax relief to people who need it without harming all the public facilities and public services and education that we so desperately need," Schiller said describing the program’s advantages.

Speakers and positions - Zach Schiller (Policy Matters Ohio) urged a circuit-breaker alternative targeted at taxpayers who bear a high property-tax burden relative to income. - Representative Thomas (vice chair) and Representative Troy (ranking member) sponsored and supported amendments designed to preserve revenue for entities that need it while capping unvoted growth for others.

Clarifying details cited in committee - Inside millage totals: "Nearly $4,000,000,000" statewide in tax year 2024; about half went to school districts, according to testimony by Policy Matters Ohio. - Township share: $457,000,000 to townships in 2024, per testimony. - Growth since 2018: Inside millage rose from 2.61 (2018 base) to $3.96 billion in 2024, a 52% increase. - Estimated impact of substitute: Testimony estimated a $230,000,000 annual reduction in inside millage by 2024 using 2018 as base if the substitute had been in effect.

Implementation notes Committee members requested harmonization and engrossment by LSC of the accepted amendments. Several members said the changes are part of a broader package of property-tax reforms under committee consideration, and that targeted circuit-breaker programs and homestead exemptions are also being studied in separate bills.

Speakers - Zach Schiller, Research Director, Policy Matters Ohio — nonprofit - Chairman Romer, Chair, Ohio House Ways and Means Committee — government - Representative Thomas, Vice Chair — government - Representative Troy, Ranking Member — government - Representative Veil — government

Authorities - type: other; name/description: House Bill 920 (historical reference / HB 920 framework); referenced_by:["context on inside millage and school levies"] - type: other; name/description: House Bill 365 (circuit-breaker proposals referenced); referenced_by:["circuit-breaker bills mentioned in testimony"]

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discussion_decision {"discussion_points":["Trade-offs between across-the-board caps and targeted relief such as a circuit breaker","How to protect revenue for entities serving new development","Role of County Budget Commissions as oversight when inside millage is reduced or restored"],"directions":["LSC to harmonize accepted amendments"],"decisions":["HB 335 favorably reported to the House (11-1)"]}

clarifying_details [{"category":"inside millage total","detail":"Statewide inside millage in tax year 2024","value":3960000000,"units":"USD","approximate":true,"source_speaker":"Zach Schiller"},{"category":"township share","detail":"Inside millage revenue to townships in 2024","value":457000000,"units":"USD","approximate":true,"source_speaker":"Zach Schiller"},{"category":"growth_since_2018","detail":"Inside millage growth from 2018 to 2024","value":52,"units":"percent","approximate":true,"source_speaker":"Zach Schiller"},{"category":"estimated_substitute_impact","detail":"Estimated annual inside millage reduction if substitute had been in effect","value":230000000,"units":"USD","approximate":true,"source_speaker":"Zach Schiller"}]

proper_names [{"name":"Ohio House Ways and Means Committee","type":"other"},{"name":"House Bill 335","type":"other"},{"name":"Policy Matters Ohio","type":"organization"},{"name":"Legislative Service Commission","type":"agency"},{"name":"County Budget Commission","type":"agency"},{"name":"House Bill 920","type":"other"},{"name":"House Bill 365","type":"other"}]

community_relevance {"geographies":["Statewide (Ohio)"],"funding_sources":["local property tax (inside millage)"],"impact_groups":["townships","school districts","municipalities","taxpayers on fixed incomes"]}

meeting_context {"engagement_level":{"speakers_count":8,"duration_minutes":60,"items_count":1},"implementation_risk":"medium","history":[{"date":"2025-03-01","note":"HB 335 accepted amendments and favorably reported to House"}]}

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