How Recent State Legislation Will Impact Property Taxes within Greenon Local Schools
Recent changes to Ohio law will significantly impact how property taxes are calculated and collected for school districts across the state, including Greenon Local School District. Several House Bills signed into law in December 2025, most notably House Bills 129, 186, 309, and 335, represent the most sweeping changes to Ohio property tax law in nearly 50 years. These changes are reflected in the District’s February Five-Year Forecast and will have both short-term and long-term implications for taxpayers and school funding.
Limiting Property Tax Growth for Homeowners
A central goal of the new legislation is to limit rapid increases in property taxes caused by rising property values. House Bill 186 establishes an “inflation cap credit,” which prevents school district property tax revenue from increasing faster than the Gross Domestic Product Deflation Factor (GDP-DF) following county reappraisals or triennial updates. In practical terms, this means that even if home values increase significantly, the portion of school property taxes generated from those increases will be capped.
For Greenon residents, this provision will help moderate future tax increases after reappraisals. The caps created by HB 186 further limit the District’s ability to realize additional revenue from growth in valuations. So, even though property values may rise significantly, Greenon can only keep a small portion of that growth. The state provides some reimbursement, but it does not fully replace the lost local revenue and does not increase with the district's actual costs.
Retroactive Tax Adjustments and “Clawbacks”
One of the most impactful and concerning elements of HB 186 is its retroactive application. The law requires the Ohio Department of Taxation to recalculate property taxes for reappraisals and triennial updates that occurred in tax years 2023, 2024, and 2025. If those recalculations show that taxes exceeded the new inflation cap, school districts' current tax settlements will be reduced to issue credits back to taxpayers, even though the revenue has already been collected and used for operations.
For Greenon Local Schools, the Five-Year Forecast anticipates that these retroactive adjustments will reduce property tax collections beginning in fiscal year 2027, with an initial reduction of $1.2 million and an estimated annual reduction of approximately $842,000 in subsequent years. These reductions are built directly into the 5-year forecasted revenue figures. Final amounts will not be known until the Ohio Department of Taxation releases official calculations, which are expected after the February forecast filing deadline. House Bill 186 helps taxpayers in the short term, but for Greenon, it reduces long-term funding growth and increases the likelihood that the district will need to return to voters sooner to maintain current programs.
Changes to Emergency and Fixed-Sum Levies
House Bill 129 makes another significant change by restoring “fixed-sum/emergency” levies and including them in the 20-mill floor calculation beginning with the next reappraisal cycle. For Greenon, this change is expected to take effect with the TY2028 reappraisal, collected in calendar year 2029.
Currently, Greenon has voter-approved emergency levies that are not included in the 20-mill floor. Once HB 129 takes effect, those levies will be factored into the floor calculation, which is projected to reduce annual property tax revenue by approximately $2.2 million beginning in 2029. While this will result in lower property taxes for residents, it also represents a substantial long-term revenue loss for the District.
Local Oversight and Uncertainty
House Bill 309 adds another layer of uncertainty by granting County Budget Commissions the authority to reduce voter-approved levies, other than debt levies, if they determine collections are “unnecessary and excessive.” While the direct impact of this provision cannot be predicted at this time, it introduces the possibility of current levy reductions outside of the local school board’s control.
What This Means Going Forward
Together, these legislative changes are expected to slow the growth of property taxes for Ohio and Greenon residents and, in some cases, reduce future tax bills. At the same time, they significantly constrain the District’s largest source of local revenue. Property taxes account for nearly 50% of Greenon Local Schools’ operating resources, and limitations on that revenue increase the importance of careful financial planning and long-range forecasting.
The Board of Education and District administration will continue to monitor guidance from the Ohio Department of Taxation and adjust the Five-Year Forecast as more definitive information becomes available. The Board and Administration regularly review financial forecasts and compare projected revenues to actual results to ensure resources remain aligned with educational priorities, operational needs, and long-term financial stability. As always, the goal remains to balance responsible stewardship of taxpayer dollars with the need to maintain high-quality educational programs for Greenon students.