Ohio House Passes Additional Property Tax Relief Bills: HB 186 and HB 335 

The Ohio House of Representatives has advanced two new property tax reform measures – House Bills 186 and 335 – both passed on October 22, 2025. Together, these bills propose billions in property tax relief by capping the growth of both “outside” and “inside” millage at the rate of inflation, effectively preventing unvoted tax increases that occur when property values rise. 

The legislation now moves to the Ohio Senate for further consideration. 

Overview of House Bill 186 

• Sponsors: State Representatives Jim Hoops (R–Napoleon) and David Thomas (R–Jefferson) 
• Goal: Provide property tax relief by capping increases from “outside” millage. 
• Key Provision: Establishes an Inflation Cap Credit to prevent school districts that have reached the 20-mill floor from receiving excessive revenue when property valuations rise rapidly. The credit limits unvoted tax revenue growth to the rate of inflation, recalculated with each triennial update or sexennial reappraisal. 
• Fiscal Impact: Estimated savings of nearly $1.7 billion for property owners over the next three years. 

Overview of House Bill 335 

• Sponsors: State Representatives David Thomas (R–Jefferson) and Bill Roemer (R–Richfield) 
• Goal: Address unvoted tax increases driven by “inside” millage. 
• Key Provision: Requires county budget commissions to adjust inside millage rates so that property tax revenue growth does not exceed the rate of inflation. 
• Fiscal Impact: Combined with HB 186, the legislation could reduce property taxes by as much as $2 billion over three years. 

What Happens Next 

Both bills now advance to the Ohio Senate. If passed, the legislation will move to Governor Mike DeWine for his signature to become law. 

Context and Legislative Progression 

Earlier this month, the Ohio House passed two more modest reform measures – HB 129 and HB 309 – that primarily addressed school funding calculations and county budget commission authority. 

HB 186 and HB 335 represent a more aggressive, systemwide approach to property tax reform by directly capping total property tax growth. This legislative evolution, from targeted technical adjustments in HB 129 and HB 309 to broader structural changes in HB 186 and HB 335, reflects growing momentum among lawmakers to deliver meaningful and immediate tax relief to Ohio property owners. 

Andy Hardy
Vice President of Government Relations
andyhardy@columbus.org