OhioHB 129136th General Assembly (2025-2026)HouseWALLET

Limit ability to reallocate certain school property tax millage

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 4 benefits, 1 costs, 4 mixed.

Recovered railroad taxes can fund local operations

Local taxing districts can put recovered railroad bankruptcy tax payments into their general operating funds. The money must represent taxes from a levy that has since expired. The law removes the former restriction to expired general or emergency levies. This gives districts more spending flexibility, not a household payment or tax credit.

Extra aid for nuclear plant schools

For fiscal years 2022 through 2026, qualifying school districts with a nuclear power plant receive supplemental payments. A payment is due when combined aid under divisions (C) and (E) falls below the district's fiscal year 2017 amount under this section. The extra payment equals that gap. The money goes to the district, not directly to households.

Schools can reserve money for improvements

City, local, and exempted village school boards can reserve part of their prior-year leftover balance for permanent improvements. The projects must be current or planned within the following three years. Boards use their most recent certified balance to make the designation. The county auditor leaves the reserved amount out of the balance used in the operating-levy calculation.

Schools received payments for past tax losses

School and joint vocational districts received payments covering 100% of specified debt-purpose tax losses within the ten-mill limit. Payments for electric-company tax-value losses from tax year 1998 and natural-gas-company losses from tax year 1999 ran through fiscal year 2016. Payments for qualifying debt-purpose taxes from tax year 2005 ran through fiscal year 2018. The calculations treated these taxes as fixed-rate levies. These payment periods have ended; they are not current household benefits.

School reimbursements shrink when levies end

School and joint vocational districts lose specified reimbursements when a qualifying levy stops being charged and payable after 2014. The cut equals the amount tied to that levy in fiscal year 2015 payments, except for payments under division (D). Beginning in 2016, the tax commissioner must review fixed-sum debt levy-loss calculations by January 31 each year. If a levy scheduled for reimbursement is no longer charged and payable, the commissioner must revise that year's calculation and later years.

Existing school taxes can continue within limits

School districts can renew all or part of existing operating taxes under sections 5705.194 and 5705.199 approved before January 1, 2026. Renewals can raise the same yearly sum or a lower sum, but not more. Section 5705.194 renewals follow the same manner as the existing tax; section 5705.199 renewals occur in its final tax year. The law also allows qualifying-levy status when the pre-2026 tax was a defined subsequent renewal or substitute levy, respectively. These renewals can continue property-tax charges, but the law does not calculate an owner's bill.

New calculations for homeowners' school taxes

Beginning in tax year 2026, the law changes school property-tax reduction calculations. Levies under sections 5705.194 or 5705.199 approved before January 1, 2026, are temporarily excluded from those calculations and related floors. The exclusion lasts until the first tax year beginning in 2026 when section 5715.24 applies in a county containing district territory. In the first year additional operating taxes are levied or included, the calculation uses a prior-year baseline equal to the applicable floor: 2% of taxable value for covered school districts or 0.2% for covered joint vocational districts. Reductions can lower taxes on unchanged property, but the floors limit that relief.

School emergency levies face tighter limits

City, local, exempted village, cooperative education, and joint vocational school districts can seek new emergency operating levies only during fiscal caution, watch, emergency, or a qualifying disaster. Their boards must find that available tax, state, and federal money is insufficient; these new levies cannot be renewed. For disaster-based approval, the district must be affected, and the disaster period must exist in district territory when the resolution is adopted. The state education director must approve or deny the disaster request within 15 days of receiving the resolution. Levies under section 5705.194(B), (C), or (D) can last no more than five years, down from ten.

School boundary changes reshape reimbursement payments

The state education department and tax commissioner must adjust reimbursements when school or joint vocational district territory merges or transfers. Merged districts combine the specified resources and allocations. Transfers to existing districts shift allocations using transferred pupils' formula average daily membership divided by the transferring district's total. Newly created districts after December 31, 2010, are treated as having none of the specified resources or allocations. Reimbursements for debt taken over by a district are divided equitably when applicable.

Sponsors & Cosponsors

Sponsor

David Thomas
Republican • House

Cosponsors

Bob Peterson
Republican • House
Heidi Workman
Republican • House
Jennifer Gross
Republican • House
Josh Williams
Republican • House
Levi Dean
Republican • House
Mark Johnson
Republican • House
Tex Fischer
Republican • House
Thomas Hall
Republican • House

Roll Call Votes

All Roll Calls

Yes: 203 • No: 36

House vote • 11/20/2025

Concurred in Senate amendments

Yes: 81 • No: 8

Senate vote • 11/19/2025

Passed

Yes: 23 • No: 10

Senate vote • 11/19/2025

Local Government: Reported

Yes: 5 • No: 2

House vote • 10/8/2025

Ways and Means: Reported

Yes: 13 • No: 0