What Changed • Why It Matters • When You’ll See It
New Ohio laws limit tax spikes, expand homeowner relief, and slow future increases – unless voters approve them.
January 10, 2025
From the Fairfield County Auditor’s Office
More Relief for Homeowners
(House Bill 186)
What Changed:
- The owner-occupancy property tax credit (for people who live in their homes) is increasing over four years
- Grows from about 2.5% to over 15%; first change in Tax Year 2026
- The 10% non-business property tax credit for rental and investment property is being phased out (agricultural land excluded)
What this means:
- Homeowners who live in their homes receive more tax relief
- Rental and investment properties no longer receive the old credit
Effective:
First change in Tax Year 2026
Inflationary Cap of Reappraisal-Driven Increased (House Bill 335)
Elimination of Spikes Due to Market Assessments (ending large increases formally based on market, without a vote.)
What Changed:
- Previously, a portion of property taxes rose when property values increased. Now, increases tied to inside millage are capped at the rate of inflation
Effective:
Tax Year 2026 (bills paid in 2027, depending on county reappraisal schedules)
Local Oversight of Tax Rates (House Bill 309)
What Changed:
- County Budget Commissions may review and adjust tax rates when collections exceed justifiable needs
- A one-year grace period applies to new voter-approved levies
- Renewed levies are not affected
Effective:
Now
Inflation Cap of School Tax Growth (House Bill 186)
School Tax Relief (20-Mill Floor)
What Changed:
- Revenue growth caused by the 20-mill floor is now limited by inflation.
Effective:
- The inflation cap on revenue growth caused by the 20-mill floor (HB 186) applies beginning in Tax Year 2025.
- These changes will be reflected in 2026, with credits on the second half tax bill.
Updated 20-Mill Floor Calculation (House Bill 129)
What Changed:
- Emergency, substitute, and incremental levies will be included in the calculation
- Helps slow school tax increases and move districts off the floor over time
A school district is on the 20-mill floor when state law requires it to collect at least 20 mills in property taxes—causing automatic tax increases even without new voter approval—and moving off the floor means the district will not have the forced increases, allowing tax growth to slow and rely more on voter-approved levies.
Effective:
The updated calculation of the 20-mill floor that includes emergency, substitute, and incremental levies (HB 129) also applies upon guidance from the Department of Taxation, likely no sooner than 2027, as it is tied to revaluation years. For Fairfield County, the next update is either in 2028 or 2029, based on guidance to come from the Department of Taxation.
What this means:
- School districts subject to the 20-mill floor will see slower automatic tax growth starting with Tax Year 2025.
- Most homeowners should notice credits with their 2026 second half tax bills.
- • The exact impact can vary by district depending on levy structure and valuation changes.
Important clarification:
- These reforms do not reduce voter-approved levies.
- They limit automatic growth that previously occurred without a vote.
Property Valuation Changes (House Bill 124)
- County Auditors select the sales used to determine property value changes.
- The state may appeal if the sample is unreasonable or unlawful.
The Big Picture
- $2-$3+ billion in projected statewide property tax savings.
- First impact: Tax bills due mid-2026.
- Larger savings: Continue through 2027-2029 as credits fully phase in.
- Future: Slower increases, tied to inflation.
What This Means For You:
- You will likely pay less than you would have under prior law.
- You may still see increases if property values rise – but these increases will be smaller and more predictable, as they will be tied to inflation.
- Local voter-approved levies will increase property taxes.
- More levies on the ballot are expected.
