The auditors in Butler and Greene counties are estimating values could jump as high as 20-25% — the hot housing market remains the culprit — after the reappraisal process concludes later this year.
State Rep. Angela King, R-Celina, has introduced House Bill 504, known as the Calculated Adjustments for Property Surges Act, that if enacted would spread resulting tax increases over three years.
She recently told the Ohio House Ways and Means Committee, “this measured approach gives families time to plan and adjust without depriving communities of needed revenue.”
“House Bill 504 provides local governments with an optional tool to phase-in significant property tax increases over a three-year period, rather than absorbing the full increase in a single year,” she said. “During this time property owners receive a tax credit covering the difference between the phased-in amount and the full reassessed value.”
The Legislative Services Commission fiscal report noted if the bill were enacted this year and all of the 41 counties undergoing the property value reappraisal and updates adopted the tax break, it could cost them roughly $160 million in lost revenue.
King’s bill would empower county commissioners to enact the temporary tax reduction — on all taxing entities countywide — if values rise above 15% or more following a value adjustment. Taxpayers would pay a third of increase the first year, two-thirds the next year and the full increase would kick in thereafter.
Lawmakers have already enacted measures to rein in huge value and subsequently tax hikes over the past several years. Recent reforms cap tax increases for certain school districts to the rate of inflation and limit some millage increases for all taxing bodies to the inflation rate.
Former Ashtabula County auditor Rep. David Thomas, who was tapped by Republican leadership to guide property tax reform efforts, said if King’s bill becomes law it would further insulate taxpayers from flukes — like the pandemic — in the market.
“We capped everything to inflation,” he said. “But what happens if values increase high and inflation’s high, what protection is there. This is another tool for local governments to use.”
Following the triennial update values soared an average 37% in Butler, 30% in Greene Count and Montgomery County 34%. Along with the inflation caps the new guardrails give tax credits to homeowners who paid windfalls after value adjustments, provide a state-paid offset over two years to school districts and boost owner-occupied tax rollbacks among other law changes.
Butler County Auditor Nancy Nix said she is grateful “the triggers are in place to stop the growth of the property tax increases” especially since she is predicting the reappraisal increases could range from 13% to 25%. But the auditors are still navigating the tax bill changes from last year.
“We need to let the legislation we have in front of us play out before adding new layers,” Nix said. “Because there’s so much confusion and I can feel the angst among county auditors about getting done what’s in front of us that any more property tax changes will only cause more confusion. We need a year or two to let this play out.”
Greene County Auditor Kraig Hagler is estimating the reappraisal will produce value hikes in the neighborhood of 15% to 20%. He isn’t a fan of H.B. 504 either.
“It looks like a kick the can policy that will only make understanding property taxes ever harder for the average citizen with really no relief,” he said. “They are just passing the cost over three years. I see this only adding to the complexity of property taxes and will lead to more questions by citizens.”
Montgomery County Auditor Karl Keith had no comment on the legislation and said he won’t hazard a guess on how much values might jump after they are finished reappraising 250,000-plus properties.
“We are still working on our 2026 property reappraisal and we look forward to sharing our value changes with the public later this year,” Keith said.
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