OH HB186

Creates an "Inflation Cap Credit" limiting school district property tax increases during reappraisals/triennial updates to the rate of inflation (GDP deflator), applying to residential and business properties in districts at or below the 20-mill floor for school districts or 2-mill floor for joint vocational districts

Phases out the 10% partial property tax exemption for residential properties over three years (reducing from 7.5% to 0%), while maintaining the 10% exemption for farming properties

Increases the homestead exemption reduction for owner-occupied residences from 2.5% to 15.38% over four years (5.70% in year one, 8.92% in year two, 12.15% in year three, 15.38% thereafter)

Establishes a School Revenue Temporary Offset Fund to reimburse school districts for revenue losses resulting from the inflation cap credit, funded by delaying the 2026 sales tax holiday and transferring funds from the Expanded Sales Tax Holiday Fund

Applies retroactively to counties that underwent reappraisals in tax years 2023-2024, with the Tax Commissioner calculating credit factors and certifying them to county auditors within 60 days of the effective date