Ohio lawmakers pressured into action on property taxes, but what’s actually on the table?
- Published: Oct. 27, 2025, 9:33 a.m
By Anna Staver, Cleveland.com
COLUMBUS, Ohio — The words “abolish property taxes” have Ohio lawmakers’ full attention.
The idea may never become law, but the existence of a constitutional amendment to erase the tax altogether has done what years of complaints could not — motivate lawmakers to rewrite the state’s most unpopular tax.
“Some of us have been thinking about doing something for many years,” House Speaker Matt Huffman, a Lima Republican, said. “But it perhaps took that push, like it often does, to get something extraordinary done.”
Proposals have come from every corner of the Statehouse. Some would cap how fast school taxes can rise, while others would expand exemptions for seniors, limit what local governments can collect, or let counties create new credits of their own.
A few lawmakers even want to overhaul how Ohio funds schools entirely. Here’s a look at what’s moving.
Big ideas for the ballot
Abolishing property taxes isn’t the only constitutional amendment being floated this year. Lawmakers are also pitching amendments to overhaul how Ohio funds local services.
Senate Joint Resolution 7: Sponsored by Sen. Bill Blessing, a Cincinnati-area Republican, this amendment would let locally elected bodies — school boards and city councils — impose land taxes without voter approval.
“It flips development on its head,” Blessing said, because a vacant lot and an apartment complex would be taxed the same.
He thinks the idea would end the need for tax abatements to spur development, encourage density in cities, and help address the housing shortage.
Senate Joint Resolution 4: Sen. Andrew Brenner, a Delaware County Republican, wants the state to take over all school construction debt in Ohio.
His proposal would pay off local bond debt, which he says would lower property taxes and make it easier for districts to merge.
This amendment is part of his larger push to replace local school levies with a single statewide property tax and a 1.75% income tax.
Property tax cap: Republican Reps. Beth Lear of Delaware County and Tex Fischer of Mahoning County are drafting a constitutional amendment to cap what Ohioans pay in property taxes.
It would limit bills to 1.25% of a home’s appraised value for most people and 1% for seniors.
“It would be a substantial tax break for pretty much everyone in the state,” Fischer said in July.
Homeowners in Cuyahoga County pay about 2.16% of their home values in property taxes each year, according to county data.
Limits on local growth
House Bill 186: Passed overwhelmingly by the Ohio House, this bill would tie the 20-mill floor to inflation and lower property taxes for homeowners currently paying that minimum rate.
The 20-mill floor is the minimum amount of local property taxes a school can legally collect. It’s designed to keep school funding stable but has also driven sharp tax increases when home values rise.
“Those that saw the most spikes will then see the most benefit,” said Rep Dave Thomas, an Ashtabula County Republican.
You can see what it would save you by clicking here.
House Bill 335: This bill would limit the growth of inside mills to the rate of inflation.
Local governments can collect up to 10 inside mills without voter approval. They also cannot be reduced when home values rise.
“We’re saying never again to that as well,” Thomas said.
HB 335 also passed the House, and when it’s combined with HB 186, the estimated savings to Ohioans over the next three years are $2.4 billion.
School savings accounts: Lawmakers added a provision to the state budget that would have capped school districts can save.
It limited carryover balances to 40% of annual operating expenses, but Gov. Mike DeWine vetoed it.
Huffman told reporters Wednesday that they won’t be overriding DeWine on this one.
“Unless there is some other need that I don’t see right now, we probably wouldn’t do that,” Huffman said.
Credits and exemptions
New local options: Local governments now have the option to “double” the homestead exemptions offered by the state.
These state-paid property-tax breaks help seniors and people with disabilities, and counties can now add their own.
“Let’s put our money where our mouth is and go to our counties and ask them to use the tool,” said Rep. Brian Stewart, a Pickaway County Republican.
His home county became one of the first in Ohio to act, approving $1.1 million in relief. Stewart said the average senior in his county will save about $349 next year.
House Bill 103: This bipartisan bill would increase the homestead exemption.
Qualifying homes wouldn’t pay taxes on $50,000 of their appraised value instead of the current $28,000. And the income limit to qualify would rise from $40,000 to $45,000.
Since the state reimburses local governments for these discounts, the Legislative Services Commission estimated it would cost $337 over the next two fiscal years.
House Bill 365: This is a circuit breaker bill, which means it would cap what certain homeowners pay in property taxes by tying their bills to income.
No one would pay more than 5% of their household income in property taxes, and the excess amount would be returned as an income tax credit.
The benefit would scale down as income rises and apply only to owner-occupied homes. Homeowners earning $60,000 or less could receive up to $1,000, while those making between $90,000 and $100,000 could get up to $200 back.
It has yet to have a hearing.
House Bill 156: This would freeze property taxes for low-income seniors whose homes are worth $500,000 or less.
Basically, it would lock in the amount you currently pay, and the state would cover any increases going forward.
LSC estimated the cost for this would compound over the years and could reach nearly $580 million a year by 2032.
DeWine’s property tax work group also considered this idea, but it suggested having the “back taxes” paid out when someone sold the house or passed away.
Structural changes
Levy elimination: Starting in February 2026, Ohio will eliminate three types of school levies: emergency, substitute, and replacement.
Together, they bring in about $1.3 billion a year for schools.
Republicans say the terms confuse voters because an emergency sounds urgent even though it’s just a fixed-sum levy. And replacement has actually meant a tax increase because it uses updated home values.
House Bill 129: This bill would change how school property taxes are calculated.
When all a district’s levies are added together, they create the total tax rate, or millage. Ohio law then reduces that amount to an effective rate to prevent big tax spikes, but districts can’t drop below the 20-mill floor.
Some levies don’t count toward that limit, meaning districts at the floor can collect extra mills. HB 129 would close that loophole.
It’s a change that will impact about two-thirds of Ohio schools if passed.
House Bill 309: This gives county budget commissions the authority to lower property taxes.
The bill requires a commission to wait five years before deciding whether a levy amount is unnecessary or excessive:
- Unnecessary was defined as a levy that collects more than reasonably needed once balances and other revenue are counted.
- Excessive means the rate overshoots what’s required to provide normal services
More school funding: House Minority Leader Dani Isaacsohn, a Cincinnati Democrat, said Ohio’s property tax problems stem from years of the state shifting costs onto local governments.
The Local Government Fund was cut in half, and the state’s share of K–12 funding continues to drop.
Isaacsohn wants Ohio to cover 50% of public education costs, up from the 32% projected in the current budget for FY 2027.
“What we really need is for the state to step up,” he said.
Republicans counter that the state is spending more on schools than ever before and that local governments have benefited from “windfalls” as home values have soared.