‘More tax relief is needed’ for local homeowners, county auditor says

“Our residents have told us that they can’t afford their taxes at the level they are now,” Keith said. “The changes that have been made that will help homeowners in the future are good, but they aren’t good enough. More tax relief is needed.”

The Montgomery County Auditor’s Office is reviewing each of the more than 250,000 real estate parcels in the county to assign a new value to each one this year. Property owners will be told their new values in the fall.

Those values will be used for taxing purposes starting with the tax bills residents will receive in 2027. This process is mandated by the Ohio Department of Taxation.

20-mill floor tax credits

House Bill 186 was signed by Ohio Gov. Mike DeWine last month. This legislation will have the earliest impact on taxes statewide, starting with the second half of 2026 property tax bills.

H.B. 186 caps revenue increases from levies affected by Ohio’s 20-mill school funding guarantee. It authorizes a property tax credit for property owners located in a school district at the 20-mill floor.

The 20-mill floor stipulates that effective millage for certain school levies cannot fall short of 20 mills. Households in districts that have hit the 20-mill floor pay more to their school districts as the value of their homes increases.

Per $100,000 in home value, the Montgomery County Auditor’s Office estimates the new credit will save homeowners $80 in Miamisburg City Schools, $45 in New Lebanon Local Schools and $16 in Valley View Local Schools.

“There’s been a lot of talk about tax relief,” Keith said. “There’s been some activity there, but it’s really small. What I’m afraid of is that people are going to have unrealistic expectations.”

Residents of these school systems have seen higher tax increases in recent years than those in the county’s other 13 districts, who will either receive a smaller credit from the bill, or none at all, according to the auditor’s office.

The bill also includes another reform that will benefit all homeowners, starting in 2027. It will gradually expand Ohio’s Owner Occupancy Credit, which provides savings on homeowners’ primary residences.

Once the bill is fully implemented, homeowners in Montgomery County can expect to see an extra $50 in savings a year per $100,000 of their home’s value, according to Keith’s estimates.

A hot housing market

New construction in Montgomery County last year totaled $255 million, $161 million of which was residential. This is down from the 2024 total of $298 million and the 2023 record-high of $465 million.

Washington Twp. saw the most residential gains, with $61.7 million in its new construction reported for 2025. The next highest new residential construction market value was seen in Dayton ($3.6 million).

But the overall market value of property countywide rose 2% from 2024 — totaling $41.9 billion at last year’s end.

Home sales continue to grow, according to Keith, and the property valuation process is market-driven. Dayton Realtors reported this month that Dayton-area home sales grew 1% in 2025 compared to the previous year.

“The real estate market just continues to grow,” he said. “I think we’re reaching a limit, but for now, it’s hot.”

Keith said he doesn’t think Ohio has a property valuation problem — instead, it has a taxing problem. The auditor said he would like to see a state-funded expansion of the Homestead Exemption program, which provides savings to lower-income seniors and disabled homeowners.

And as a group of Ohioans continues to pursue measures to eliminate property taxes altogether, Keith said he understands the frustration of taxpayers. But he doesn’t support the elimination of revenue that supports libraries, schools and other community services.

“Last year, the state gave $600 million to the billionaire owners of a losing football team,” Keith said. “That’s more than half a billion dollars that could have been used to help seniors on fixed incomes stay in their homes.”