Bill > HB186

This bill regards school district property taxes and introduces a new school funding formula with several key provisions. It creates a new section of law (319.303) that establishes an "Inflation Cap Credit" for property taxes in school districts undergoing reappraisal or triennial updates. The bill provides for tax reductions for both residential and business properties, with different reduction percentages based on whether the property is used primarily for farming, residential, or business purposes. For residential properties, the tax reduction starts at 7.5% in the first tax year and increases to 12.15% in the second year, ultimately reaching 15.38% in the third year and subsequent years. The bill also requires the Tax Commissioner to calculate and certify credit factors for properties in counties undergoing reappraisals, and provides a mechanism for school districts to receive temporary offset funding if their tax revenues are reduced as a result of these changes. The bill applies to tax years beginning in 2025 for real property and 2026 for manufactured homes, with specific provisions for properties in counties that underwent reappraisals in 2023 and 2024. Additionally, the bill includes technical provisions about how these tax reductions will be implemented and accounted for by county and state officials.

Budget and Finance, Government Affairs

https://www.legislature.ohio.gov/legislation/136/hb186