Property taxes in Ohio are a mess right now. If you've opened your mail lately and felt your heart drop into your stomach after seeing your new assessment, you aren't alone. It's stressful. Across the state, homeowners are watching valuations climb by 30%, 40%, or even more in some counties. This is where Ohio House Bill 1 enters the conversation, though honestly, it’s been a bit of a legislative rollercoaster.
People are looking for a lifeline. They want to know if the state government is actually going to do something about the "sticker shock" that comes with skyrocketing home prices. But here’s the thing: HB 1 isn’t just one simple "tax cut" button. It’s a massive, complex attempt to rewrite how Ohio handles income and property taxes simultaneously. It's bold. It's controversial. And depending on who you ask, it’s either a masterstroke of economic policy or a looming disaster for local schools.
Why Ohio House Bill 1 is Such a Big Deal Right Now
To understand the friction, you have to understand how we got here. Ohio’s property tax system is governed by something called House Bill 920, a law from the 1970s. Basically, it’s designed to keep school districts from getting a "windfall" when property values go up. When values rise, the tax rate is supposed to be squeezed down so the district collects the same amount of money.
But that system is breaking.
Voters are frustrated because even with those protections, their bills are still climbing. Ohio House Bill 1, introduced by Representative Adam Mathews, aims to pivot the state toward a flat tax system. The idea is simple: simplify everything. Instead of the current graduated income tax brackets, HB 1 proposes a flat 2.75% rate for everyone.
The Property Tax Pivot
But the part that gets people talking in grocery store aisles is the property tax side. The bill suggests changing the "assessment rate." Currently, you pay taxes on 35% of your home's market value. HB 1 wants to drop that to 31%.
It sounds great. Less taxable value equals less money out of your pocket, right?
Well, it’s complicated. If you lower the taxable value of every home in a city, the local school district suddenly has a massive hole in its budget. Schools in Ohio rely heavily on these local dollars. If the state doesn't fill that gap, the schools have to go back to the voters and ask for new levies. You see the cycle? It’s shifting the burden from one pocket to the other.
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The Push for a Flat Tax
There's a real philosophical divide in the Statehouse. Supporters of the flat tax argue that it makes Ohio more competitive with states like Florida or Tennessee. They believe that if we simplify the tax code, businesses and high-earners will flock here.
"We want to make Ohio the most attractive place in the Midwest to live and work," is a sentiment you'll hear often from the bill's proponents.
But opponents, including groups like the Ohio Education Association and various non-profits, are worried. They point out that a flat tax disproportionately benefits the wealthy. If you’re making $250,000 a year, a flat tax of 2.75% is a huge win compared to current rates. If you’re making $40,000? The savings are negligible, and you might actually lose more in services—like public transport or library hours—than you gain in your paycheck.
The 10-Percent Rollback Drama
One of the most technical—and most annoying—parts of Ohio House Bill 1 involves something called the 10-percent rollback. For decades, the state of Ohio has basically paid 10% of your property tax bill for you. It was a "thank you" for being a homeowner.
HB 1 proposed messing with this.
By restructuring how these credits work, the bill's critics argue that some homeowners could actually see their taxes increase despite the "cut" in the assessment rate. It’s a math problem that would make a high schooler cry. The reality is that tax policy is never a zero-sum game. When the state stops paying for something, the cost doesn't just vanish. It just moves.
What Most People Get Wrong About HB 1
A lot of folks think that if HB 1 passes, their next tax bill will magically shrink. Honestly, that’s probably not true. Even with the changes proposed in Ohio House Bill 1, the massive surge in home prices we've seen since 2020 is still the primary driver of your tax bill.
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If your home was worth $200,000 and is now worth $320,000, a small drop in the assessment rate (from 35% to 31%) isn't going to offset that 60% jump in value.
The Local Conflict
- Schools: They are terrified of losing the "inside millage."
- Cities: They worry about funding for police and fire services.
- Counties: They are stuck in the middle, trying to explain the math to angry residents.
It's a localized struggle. A resident in Upper Arlington is going to feel the impact of HB 1 very differently than someone in a rural township in Vinton County. Wealthier districts with high property values can absorb these changes more easily. Smaller, poorer districts might face a "death spiral" where they have to constantly ask for more levies just to keep the lights on.
The Current Status of the Bill
Is it law? No.
Legislative sessions in Columbus are slow. Ohio House Bill 1 has gone through multiple hearings, and while it has strong support from the more conservative wing of the GOP, it has faced significant pushback from the Senate and even some moderate Republicans. Governor Mike DeWine has also expressed caution about any plan that might leave a multi-billion dollar hole in the state budget.
We are seeing a lot of "wait and see." There have been alternative proposals, like a property tax task force that spent months traveling the state to hear from actual humans instead of just lobbyists. They’ve looked at "circuit breakers"—which would cap property taxes based on a person’s income—as a more targeted way to help seniors on fixed incomes without blowing up the whole system.
Actionable Steps for Ohio Homeowners
While the politicians argue about Ohio House Bill 1, you still have a bill to pay. You aren't totally powerless. Here is what you can actually do right now to manage your tax burden:
1. File a Complaint with the Board of Revision
Every county has one. If you think the county auditor’s valuation of your home is way too high, you can challenge it. You’ll need evidence—like a recent appraisal or a list of similar homes in your neighborhood that sold for less. It’s a formal process, but it’s the most direct way to lower your bill.
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2. Check Your Exemptions
Are you over 65? Are you a disabled veteran? If so, you should be getting the Homestead Exemption. It’s not automatic; you have to apply through your county auditor. It can knock a significant chunk off your taxable value.
3. Attend Local School Board Meetings
This sounds boring, but it’s where the money is spent. Schools account for the largest portion of your property tax bill. Understanding their "five-year forecast" will give you a heads-up on when they might be asking for more money.
4. Track the "Circuit Breaker" Proposals
Since HB 1 is stalled, keep an eye on new bills that focus specifically on "circuit breaker" tax credits. These are gaining bipartisan traction. They would essentially say, "If your property taxes exceed 5% of your total income, the state gives you a credit for the difference." This helps the people who need it most—seniors and low-income families—without a blanket cut that hurts schools.
5. Call Your Representative
It sounds cliché, but they are hearing from school lobbyists every single day. They need to hear from homeowners who are struggling to buy groceries because their escrow payment jumped $300 a month. Tell them specifically how Ohio House Bill 1 or similar property tax shifts would affect your household.
The debate over HB 1 is really a debate about what we value in Ohio. Do we want the lowest possible taxes to attract new business, or do we want robustly funded local services? It’s a trade-off. There is no such thing as a free lunch in tax policy, and for now, Ohioans are the ones left holding the bill while the Statehouse tries to figure out the math.
Keep an eye on the House Ways and Means Committee. That's where the real action happens. As property values continue to stay high, the pressure on lawmakers to pass something—whether it's HB 1 or a modified version—is only going to get more intense.
To stay ahead of the curve, check your county auditor's website specifically for "Revaluation" or "Triennial Update" schedules. Knowing when your next assessment is coming is half the battle. If your county is due for a spike in 2026, you need to start planning your budget adjustments or your appeal strategy today. Don't wait for the bill to show up in your mailbox.