Officials warn property-tax changes and a citizen initiative could cost Springdale about $1 million
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Summary
Assistant City Administrator Stephanie Morgan said five property-tax reform bills passed in December 2025 will change how inside millage is calculated and that a separate citizen initiative to abolish property taxes could eliminate roughly $1,000,000 of Springdale's inside-millage revenue if enacted, with no state-level plan in the address for recouping that loss.
Assistant City Administrator Stephanie Morgan told the State of the City audience that the city relies heavily on earnings taxes and that recent state actions and citizen-led initiatives could materially affect municipal revenue. "The new law will cap automatic increases to inside millage..." Morgan said, explaining the December 2025 legislative changes intended to reduce unpredictable property-tax increases.
Morgan said the five bills passed by Governor DeWine are expected to deliver more than $3 billion in property-tax relief statewide and noted several policy mechanics: the bills cap automatic inside-millage increases tied to home-value growth, give county budget commissions additional ability to modify local millage, and phase in an increase to the owner-occupancy credit over four years. Locally, Morgan said inside millage generates approximately $1,000,000 for Springdale's general fund.
Morgan also described a separate citizen-led initiative now collecting signatures that would abolish property taxes entirely (inside and voted levies) if it reaches the ballot and voters approve it. "Right now, there's currently no place at any level of government on how that revenue loss would be recaptured," she said, and she outlined that a coalition of municipal and school associations is monitoring the proposal and discussing responses.
Why it matters: Morgan's presentation frames a near-term fiscal risk for municipal services because Springdale relies on a mix of earnings tax and inside millage to fund public safety and infrastructure. City officials said they will continue to monitor state-level technical changes and the signature drive for the citizen initiative. No formal fiscal-mitigation plan was presented during the address.
Next steps: Morgan encouraged residents to consult the city budget documents and to follow updates as state rules and local responses evolve.
