The two property tax bills recently approved by the Ohio House would save homeowners more than $2.4 billion over the next three years, but they would heavily benefit those in more rural areas.

“Anything is better than nothing, but this is just a starting point,” said Mahoning County Auditor Ralph Meacham, a Republican.

“It’s going to drop the millage by a small amount. It doesn’t benefit cities. It’s more focused on smaller, rural areas.”

The bills still need to be approved by the GOP-controlled state Senate and then signed by Gov. Mike DeWine, a Republican, before they become law.

State Sen. Al Cutrona, R-Canfield, said there are several tax reform bills approved by the House, including the two passed last week, that the state Senate will address.

“There is a massive need for property tax reform,” Cutrona said.

The two bills approved Oct. 22 by the Ohio House passed with overwhelming support with state Rep. David Thomas, R-Jefferson, who represents portions of Trumbull County, as the lead sponsor.

The bills cap how much money school districts and local governments can collect in property taxes to the rate of inflation, which is about 3%.

The average property value in Mahoning County increased by 38% in the last revaluation in 2023 and by 35% in Trumbull County.

House Bill 186 limits unvoted property taxes collected by school districts, known as the 20-mill floor, and would start with the second half of the 2026 tax bills if approved by the Senate.

Every school district in the state is guaranteed to receive 20 mills. Close to 500 of the state’s 611 school districts have an effective rate that is below the guaranteed 20 mills floor, but 20 mills are still applied to the district’s value.

The 20-mill floor is a main reason for the large increases in unvoted property taxes over the past few years, Thomas said, as values increased.

This bill would save Ohio property owners about $1.7 billion over the next three years by establishing the new cap tax credit. That’s about $128 in savings on average next year, according to House Republicans.

The bill included $360 million in state money for school districts as a one-time payment in the first year.

Cutrona said he was pleased to see that included as “it would at least create a soft landing for school districts.”

But as far as the Senate approving the bill, Cutrona said, “It’s too early to determine.”

When you look at school districts in Mahoning and Trumbull counties, the inequity arises because there are a number of more-populous communities above or near the 20-mill floor.

MAHONING EXAMPLES

Let’s start with Mahoning County and use $100,000 of a home’s value as a gauge. SignalOhio.org compiled a map of the entire state with estimated numbers.

Homeowners in Youngstown will save nothing on their tax bills under this proposal because the school district is already above the 20-mill floor.

Those in Austintown, Boardman, Canfield and Struthers will save $12.23 per $100,000 of a home’s value because they’re just below the 20-mill floor. Residents of the Springfield school district will save $8.62.

Meanwhile, those with houses valued at $100,000 in the South Range district will save $71.11, $79.50 in West Branch, $81.99 in Western Reserve, $87.81 in Lowellville, $103.16 in Poland, $107.07 in Campbell and $149.13 in Jackson-Milton because they are well below the 20-mill floor.

TRUMBULL EXAMPLES

In Trumbull County, using $100,000 of a home’s value, every homeowner will get a tax break.

Those in the Warren, Girard, Mathews and Brookfield districts will see a reduction of only $11.24 per $100,000.

But several others will see much larger savings as the school districts are not near the 20-mill floor.

For a $100,000 house, it’s $41.28 in Niles, $62.20 in LaBrae, $67.80 in Lordstown, $69.58 in Joseph Badger, $69.89 in Bristol, $72.12 in Southington, $78.79 in Maplewood, $82.87 in Bloomfield-Mespo, $87.27 in Newton Falls, $87.99 in Weathersfield, $93.12 in Liberty, $94.79 in Champion, $97.99 in Hubbard, $106.38 in Lakeview, $105.48 in Howland and $112.64 in McDonald.

The other bill approved Oct. 22 by the House would save property tax owners between $621 million and $763 million over the next three years by providing similar caps to inflation on inside millage collected by local governments. Counties can collect up to 10 mills of inside millage without a vote.

Meacham said, “If you reduce a few mills, you’ll have some effect, but not major reform.”

The County Commissioners Association of Ohio praised the passage of the inflationary cap on inside millage, calling it “a significant step towards meaningful and long-term property tax reform.”

Cheryl Subler, its executive director, said: “There is no single solution to the property tax challenges Ohio faces. But tying inside millage growth to inflation is an important and necessary step toward creating a more stable and equitable system for both taxpayers and local governments.”

The House on Oct. 8 also passed two other bills, sponsored by Thomas that deal with property tax reforms.

One requires school districts to include emergency and substitute levies in their 20-mill floor. This would put 237 of the state’s 611 school districts off the floor.

The other gives county budget commissions — made up of the county auditor, treasurer and prosecutor — control over tax rates and levies.

The commission would be permitted to unilaterally cut property tax rates if revenues exceed expenditures, even if voters approved ballot initiatives for that funding.

Meacham, who sits on the Mahoning County Budget Commission, said of the bill: “In this case, there’s potential for something to be done. We can ask people to come to the commission and present your finances. I can’t say what will happen, but if we have these hearings, the budget commission can ask intelligent questions about millage and budget surplus. It adds to the transparency.”

As for commissions actually cutting tax rates, Meacham said, “It’s a heavy lift to reduce what voters voted for. I don’t know how you do that. How do you say that people voted for 2.5 mills, but only 2 mills are needed?”

David Skolnick covers politics for the Tribune Chronicle and The Vindicator.