Ohio lawmakers are moving quickly toward approving four significant property tax reforms that could reshape how homeowners across the state, including those in Lorain County, are billed beginning in 2026. The proposals are scheduled for a Senate vote this week and could reach Gov. Mike DeWine’s desk shortly afterward. According to reporting from Cleveland.com, the four-bill package represents one of the largest overhauls of Ohio’s property tax system in several decades.
The measures aim to slow automatic increases tied to rising property values, adjust how school taxes are calculated, give counties more control over excessive levy revenue, and redefine how certain school levies are counted. County treasurers, however, warn that the changes may come too late to affect January tax bills, and local governments are preparing for the possibility of reduced revenue if the bills become law.
Slowing Automatic Tax Increases
House Bill 335 would cap how much inside millage can grow each year. Inside millage is a portion of property tax that increases as home values rise, even when voters have not approved a levy. Under current law, that amount grows automatically based on property value. HB 335 would limit that growth to the rate of inflation. Supporters say this would help homeowners in counties where rapid value increases have pushed tax bills sharply higher. State budget analysts estimate the cap could reduce statewide inside millage revenue by as much as $135 million in 2026.
Local governments, including cities and townships in Lorain County, caution that these limits could cut into budgets that rely heavily on this portion of the tax base. The state has not proposed replacement funding for lost revenue.
Restraining School Tax Growth
School taxes make up the largest share of most property tax bills in Lorain County. House Bill 186 would cap increases for districts that are on the 20-mill floor, a minimum threshold in state law. When property values rise in those districts, taxes rise with them. HB 186 would limit those increases to the rate of inflation and issue refunds to homeowners who overpaid during the past two years.
The Legislative Services Commission estimates the change would save Ohio homeowners $1.7 billion over three years. Local school districts that operate at or near the 20-mill floor could see their projected revenue decrease unless the state’s temporary funding offsets bridge the gap. Lawmakers have proposed redirecting a scheduled 2026 sales tax holiday to help districts adjust.
Counting More School Levies Toward the Minimum
House Bill 129 would change which levies count toward the 20-mill minimum. Currently, some levies, including emergency and substitute levies, do not count toward the threshold. By requiring more levies to be included, roughly 180 school districts statewide would move off the floor, limiting future automatic increases in those areas. Several Lorain County districts could be affected depending on their individual levy structures.
Reducing Excess Levy Revenue
House Bill 309 would allow county budget commissions to reduce levies that generate more money than a government reasonably needs for standard operations. A levy could be reduced if it is deemed unnecessary or excessive, though commissions would be barred from altering levies within their first five years. The idea was previously vetoed by Gov. DeWine due to concerns about unclear limits, but the revised version contains more defined guardrails.
County budget commissions, including Lorain County’s, would gain considerable authority if this bill becomes law. Local homeowners could see reductions in certain levies, but local governments may have to adjust to lower revenue streams.
What This Could Mean for Lorain County Homeowners
If passed, these bills would change how property tax bills are calculated in 2026 and beyond. Homeowners could see slower growth in their tax bills during periods of rising property values and may receive refunds in some school districts. However, the potential impact varies significantly based on location, school district, and the mix of levies in each community.
Local governments and school districts may face budget adjustments, especially in areas where inside millage or 20-mill floor increases have historically provided stable revenue. County treasurers have warned that the timing may be too short to implement the changes for the January 2026 billing cycle, meaning the earliest visible impact may occur in mid-2026.
Lawmakers are expected to move quickly, and Lorain County residents may begin to see clearer projections once the bills reach the governor’s desk.
What This Could Mean for Your Property Tax Bill
Here are the main takeaways for Lorain County homeowners if the four bills become law:
1. Your taxes may not rise as fast.
When home values go up, taxes usually go up too. These bills would slow down those automatic increases so your bill grows more slowly over time.
2. Some homeowners could get refunds.
If your school district is on the 20-mill floor, you may get money back from the last two years of higher-than-expected taxes.
3. Some school taxes might stop rising automatically.
More levies would count toward the state minimum, which means fewer automatic increases when property values climb.
4. Some levies could be reduced.
County budget officials would be allowed to lower levies they decide are collecting more money than needed.
5. Changes may not happen right away.
County treasurers say January’s tax bills are probably too close to change. The first changes homeowners might see would likely show up in mid-2026.
6. Every homeowner is affected differently.
Your school district, the levies in your area, and your property value will determine the final impact.