On Friday, December 19, Ohio Governor Mike DeWine signed five major property tax reform bills into law, marking the largest property tax reform in Ohio in more than fifty years. These changes are designed to reduce the property tax burden, improve transparency, and return decision-making authority to the local level. For Montgomery County homeowners, these reforms could lead to significant long-term tax savings and stronger local oversight.
The reforms were strongly supported by county auditors across Ohio, including leaders within the County Auditors Association of Ohio (CAAO). The Montgomery County Auditor’s Office plays a key role in implementing these changes and helping residents understand how the new laws affect their property taxes.
Overview of the Five Ohio Property Tax Reform Bills
The new legislation focuses on controlling tax growth, closing loopholes, and protecting homeowners from unexpected increases. Together, these reforms are expected to generate nearly $2 billion in statewide property tax savings.
House Bill 124 (HB 124): Local Control Over Property Valuations
House Bill 124 shifts more authority over the property valuation process back to local governments, reducing centralized control from Columbus.
Why this matters for Montgomery County:
- Property values can better reflect local market conditions
- Increased transparency in how assessments are determined
- Greater accountability at the county level
With HB 124, the Montgomery County Auditor gains stronger authority to ensure property assessments are fair, accurate, and locally informed.
House Bill 129 (HB 129): Ending Hidden Tax Increases
HB 129 removes 237 school districts from the 20-Mill Floor and closes loopholes that previously allowed tax increases without voters fully realizing the impact.
Benefits for homeowners:
- Fewer hidden tax increases
- Greater voter awareness
- Improved trust in local tax systems
This reform helps ensure that Montgomery County residents are not unknowingly paying higher property taxes.
House Bill186 (HB 186): Inflation Caps and Owner Occupancy Credits
HB 186 is one of the most impactful bills for homeowners. It caps 20 Mill Floor revenue growth to inflation and expands Owner Occupancy Credits.
Key highlights include:
- Property tax growth limited by inflation
- Credits beginning on the second half of 2026 tax bills
- Increased relief for owner-occupied homes
Homeowners who live in their primary residence in Montgomery County may see direct financial benefits from this reform.
House Bill 309 (HB 309): Stronger Oversight of Local Tax Rates
HB 309 strengthens the authority of the County Budget Commission, giving it clear power to review and reduce tax rates when appropriate.
This ensures:
- Local budgets are reviewed more carefully
- Taxpayer interests are protected
- Spending aligns with community needs
For Montgomery County residents, this means greater accountability and oversight of how tax dollars are collected and used.
House Bill 335 (HB 335): Capping Inside Millage Revenue
HB 335 caps inside millage revenue growth to inflation, preventing sudden spikes in property tax bills due to rising property values.
Homeowner advantages:
- More predictable tax bills
- Reduced risk of unexpected increases
- Long-term stability in property taxation
This bill complements the broader reform package by keeping tax growth reasonable and sustainable.
How Montgomery County Homeowners Benefit
Together, these five bills represent a historic shift toward fairer, more transparent property taxation. Montgomery County property owners may benefit from:
- Lower or stabilized tax bills
- Improved clarity on assessments and rates
- Stronger local control and oversight
- Expanded tax credits for owner-occupied homes
The Montgomery County Auditor’s Office remains a trusted resource for explaining how these reforms apply to individual properties.
Role of the Montgomery County Auditor
The Montgomery County Auditor is responsible for:
- Applying updated valuation rules
- Administering tax credits and exemptions
- Educating homeowners on property tax changes
- Ensuring compliance with Ohio law
Residents are encouraged to review their tax statements and contact the auditor’s office with any questions regarding eligibility for credits or assessment appeals.
Conclusion of Ohio Property Tax Reform Bills
The newly signed Ohio property tax reform bills represent a major step forward for homeowners in Montgomery County. By capping tax growth, expanding credits, and restoring local control, these laws aim to create a more balanced and transparent property tax system. While additional reforms may come in the future, this legislation lays a strong foundation for long-term property tax relief and homeowner protection.
Staying informed and working with the Montgomery County Auditor’s Office is the best way for residents to understand and benefit from these important changes.
Frequently Asked Questions (FAQs)
What are the Ohio property tax reform bills?
They are five bills (HB 124, 129, 186, 309, and 335) designed to reduce property taxes and improve transparency.
How do these reforms affect Montgomery County homeowners?
Homeowners may see lower tax growth, increased credits, and fairer property assessments.
When will property tax credits begin?
Some credits will start appearing on second-half 2026 tax bills.
What is the Owner Occupancy Credit?
It is a tax reduction for homeowners who live in their property as a primary residence.
Who oversees property valuations in Montgomery County?
The Montgomery County Auditor is responsible for assessing property values and applying tax laws.
How can I check if I qualify for tax relief?
Contact the Montgomery County Auditor’s Office for assistance with credits, exemptions, and appeals.
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