To amend section 5705.31 and to enact section 5705.316 of the Revised Code to limit revenue increases from inside millage levies occurring due to a reappraisal or update.
HB335 is a broad property-tax and local-government finance bill that revises multiple sections of the Revised Code governing county budget commissions, school district levies, homestead-related reductions, manufactured home taxation, county sales taxes, and the distribution of local government and public library funds. Although the bill text is expansive, its core effect is to change how certain property-tax reductions are calculated and applied, create new county-authorized homestead and manufactured-home tax reductions, and add a new mechanism for adjusting fixed-sum levies so they continue to produce a specified dollar amount.
The bill creates new section 319.303, which provides an indexed property-tax reduction for qualifying residential/agricultural property and qualifying business property in school districts or joint vocational school districts affected by the existing “inside millage” reduction rules in section 319.301. It also creates section 319.304, allowing county commissioners to authorize an additional homestead tax reduction equal to the amount of the homestead exemption, subject to income limits and application rules. A parallel county-authorized manufactured-home exemption is added through section 4503.0610. The bill further amends homestead exemption statutes for real property and manufactured homes, updates tax bills and notice requirements, and revises school district and county levy procedures so that effective tax rates and levy calculations reflect the new reductions.
HB335 also changes local government finance administration by revising county budget commission procedures, reserve balance rules, tax budget and certification requirements, and the apportionment of county public library fund and local government fund revenues. It adds section 5705.60, directing the tax commissioner to annually adjust qualifying fixed-sum levies so they continue to generate the specified dollar amount, which is especially relevant to levies that are not based on a fixed millage rate. The bill includes conforming changes to school district levy statutes, including renewal and substitute levy procedures, and updates references to the new property-tax reduction structure throughout the code.
The overall sentiment reflected in the vote history appears generally favorable but not unanimous. The bill moved through the House and Senate with clear majorities, including a 71-24 House passage and a 23-10 Senate passage, suggesting substantial support for the bill’s tax-administration changes and local-government finance adjustments. At the same time, the presence of meaningful minority opposition indicates that the bill’s tax effects and redistribution of local revenue were not universally accepted.
The main points of contention are likely the bill’s impact on local taxing authority, school district revenue, and the complexity of its tax formulas. The bill’s new reductions and levy-adjustment rules could lower or redistribute revenue for counties, school districts, and other local entities, while also changing how property-tax burdens are shared among residential, business, and manufactured-home taxpayers. The bill’s own Section 4 underscores that the General Assembly intended to further limit inside millage revenue growth and alter township taxing flexibility, which suggests the legislation was part of a broader debate over property-tax relief versus local-government funding stability.
HB335 would substantially alter Ohio’s property-tax and local-government finance framework by adding new county-authorized homestead and manufactured-home reductions, changing how school-district property taxes are reduced after reappraisal or triennial update cycles, and requiring annual adjustments to qualifying fixed-sum levies so they continue to yield a specified dollar amount. It also revises county budget commission, tax budget, levy-certification, and public-library/local-government fund apportionment statutes, affecting counties, school districts, townships, libraries, and taxpayers statewide. The bill’s changes would apply prospectively to specified tax years and elections, and it repeals or amends numerous related provisions to conform the Revised Code to the new tax-reduction and levy-calculation structure.
The bill appears to have received generally favorable treatment in both chambers, advancing through committee and passing the House and Senate by comfortable margins. The vote totals suggest broad support for the bill’s tax administration reforms and property-tax relief components, though the nontrivial number of negative votes indicates some concern about its fiscal effects and policy direction. No committee transcript was provided, so the available record reflects support and opposition primarily through the roll-call votes rather than detailed debate.
The likely areas of contention are the bill’s effect on local revenue, especially for school districts and counties, and the complexity of its new formulas. Supporters would likely view the bill as providing property-tax relief and more predictable levy behavior, while opponents may worry that the reductions and levy adjustments could constrain local budgets, shift burdens among taxpayers, or make the tax code harder to administer. The bill’s broad reach into school finance, county sales tax authority, and local fund apportionment also suggests debate over how much discretion local governments should retain versus how much should be standardized by state law.