A proposed Ohio bill would push school districts back onto the ballot more often, reversing years of work in some districts to stabilize funding and reduce voter fatigue. At the same time, recently passed laws mean schools are already dealing with changes to how revenue grows over time and how much taxes can grow in relation to property valuations.
In December, several new laws were signed by Gov. Mike DeWine, which began the process of reforming taxes in Ohio. Two of these laws, HB 129 and HB 186, could have the largest impact on schools, particularly in districts experiencing growth. HB 186 would keep school tax rates, with their rates based on property valuations, from growing more than the rate of inflation each year, but only for districts who are at a 20-mill floor for tax millage. Voters with voted millage above the 20-mill floor are unlikely to see an impact.
The law seeks to correct situations throughout Northeast Ohio where, for example, state-mandated reappraisals saw home values increase by as much as 30 to 40% in 2024. School taxes went up accordingly; under the new law, such increases will be capped at the rate of inflation. The state has promised to keep schools at their current funding levels for two years.
“These bills will impact every Ohioan now and into the future,” state Rep. David Thomas, R-Jefferson, said in a press release. “We are for the first time saying no to unvoted property tax spikes and yes to more voter control and transparency. There is still much more work to go, but we have made the strongest push possible with these reforms in just 12 months."
HB 129 counts emergency, incremental growth and conversion levies toward the 20-mill floor. Bill sponsors say the move will lift nearly a third of the state’s school districts off the floor, limiting future tax increases.
House Bill 335, also signed into law, addresses inside millage. Inside millage is the 10 mills of taxes added to every residential property in Ohio to pay for public schools. The law would cap taxes tied to valuation increases on those inside mills to the rate of inflation— so, similar to HB 186, property owners won’t see a big jump in property taxes tied to increased property value -- but schools won’t reap the benefits from properties that are suddenly worth more, either.
Taken together, the bills are part of a series of legislation authored by Republicans in the Ohio statehouse as part of property tax reform measures.
“While we have passed the most substantive property tax changes in perhaps 100 years, we are not done with our efforts to reform Ohio property taxation,” said state Rep. Bill Roemer (R-Richfield) when the laws were signed.
The statehouse is considering more reforms.
House Bill 420 would eliminate continuous operating levies, sometimes called permanent levies. Continuous levies allow districts to pass a levy once and then collect the taxes indefinitely without repeatedly asking voters to renew them. By comparison, the other type of operating levy allowed in Ohio law, emergency levies, can only be collected for a set period of time before voters must re-approve them.
Under the proposal, all operating levies would be set to fixed terms, meaning districts would have to go back to voters on a regular cycle. That would mean nearly every levy would have to be approved every five or 10 years.
“House Bill 420 would have a considerable impact on the Cuyahoga Falls City School District,” said Kristy Stoicoiu, treasurer and chief financial officer for the district.
Cuyahoga Falls schools used to be on the ballot nearly every year, Stoicoiu said, renewing levies that did not raise new money but still required voter approval.
Over the past three to four years, the district shifted away from that model. When levies came up for renewal, the district placed them on the ballot as continuous levies. Voters approved each one.
That left just one remaining non-continuous levy, passed in 2019, that won’t come up for renewal until 2029.
“While voters approved continuing levies to reduce the need for frequent ballot appearances, House Bill 420 would eliminate that option and require districts to return to periodic renewal cycles,” Stoicoiu said. “This would effectively reverse the community’s preference and reintroduce the likelihood of appearing on the ballot more regularly.”
The proposed change would force districts back in front of voters more often, even when not asking for more taxes.
“It would shift the district away from a more stable, predictable revenue structure and back to one dependent on cyclical renewals, adding complexity to long-term forecasting and financial planning,” she said.
In Kent, the effect could be immediate.
“At Kent City Schools, the only levies we have are continuous and the language in HB 420 (as of right now) would have all of those levies sunset in 2029,” said Erin VanMeter, treasurer and CFO.
That would force the district to return to voters to keep current funding.
VanMeter said districts know it is difficult to pass new taxes right now and that there are limits to what communities can support. House Bills 129 and 186, billed as tax reforms to save voters money, will not have that effect in Kent.
“When these bills were passed, Ohio legislators touted that it would save Ohio taxpayers roughly $2 billion over three years,” VanMeter said. “The citizens of Kent will realize very little savings from 129 and 186 because of the makeup of our funding/levy structure.”
The district is thankful for community support so far, she said, but “we're concerned about where we are headed if our community members don't realize some sort of property tax relief in the near future.”
In Cuyahoga Falls, Stoicoiu said HB 335 is already cutting into projected revenue.
“As a result, we anticipate a cumulative loss of just under $1 million over the next four years,” she said.
HB 420, with the full title of “Enact Taxpayers Freedom Trilogy-Act I: Discontinuing the Continuum,” was introduced in the House and is currently before committee. State Rep. Gary Click, R-Vickery, and state Rep. Bernard Willis, R-Springfield, sponsored the bill.