As part of House Bill 186, the Inflation Cap Credit was introduced to provide immediate real estate tax relief to property owners in Ohio. This is a credit applied to qualifying property and reduces the taxes owed on certain levies from their respective school districts.

Through legislation the credit has been retroactively applied to, and represents the entire credit for, the 2025 Tax Year for Real Property and 2026 Tax Year for Manufactured Homes. Due to the timing of the enactment of House Bill 186, the application of the credit began with the second half tax bills paid in 2026.

This means many taxpayers will have a lower tax amount due in the second half collections of 2026 as compared to what was paid in the first half.

The credit is determined by taking a qualifying property’s taxes charged by their school district and multiplying the total by a certified credit factor calculated specifically for their respective school district.

Each school district has a unique credit factor based on the school district’s tax revenue.

With the implementation of H.B. 186, when a County undergoes a Revaluation or Triennial Update, a school district’s floor tax revenue is compared to its calculated indexed revenue.

If a district’s floor tax revenue exceeds the indexed revenue, the quotient of those revenues generates a positive credit factor to be applied to qualifying property.

• Floor Tax Revenue: Tax revenue from all Inside and Outside Levies on qualifying value during a Revaluation or Triennial Update year.

• Indexed Tax Revenue: Simplified as the tax revenue from Inside and Outside Levies on qualifying values but is capped at the rate of inflation.

A separate credit factor is calculated for each school district's Class 1 properties (Agricultural/Residential) and Class 2 properties (Commercial/Industrial).

Note: Credit factors are only calculated when a school district is at or below their respective millage floor and when their floor tax revenue exceeds the indexed revenue.

The credit amount will be different for every qualifying property. The Inflation Cap Credit will now be listed on your tax bill along with the other charges and credits typically visible on your bill. This is also available for viewing on our website by searching your property and going to the “Tax” section. If your property qualifies, the amount of credit will be listed on the line labeled "Inflation Cap Credit".

Please note that not all property is eligible for this credit and the amount of the credit is dependent upon several factors such as the property’s school district, classification (Class 1 or Class 2), and the taxes charged and payable to their school district.

In order to qualify for the Inflation Cap Credit, property and it's taxable value must meet the following criteria:

• Real Property and Manufactured Homes must be located in the County when undergoing a Revaluation or Triennial Update.

• The property and it's taxable value is in a school district or joint vocational school district that is at or below their respective millage floor (20mill/2mill).

• The property and it's taxable value is in a school district or joint vocational school district whose floor tax revenue exceeded its indexed tax revenue during it's most recent Reappraisal or Triennial Update.

• The property and it's taxable value was subject to taxation by that district for the tax year prior to the Revaluation or Triennial Update.

• Exceptions for Class 1 (Agricultural/Residential) Property – Excludes value of delineated ponds and lakes.

• Exceptions for Class 2 (Commercial/Industrial) Property- Excludes vacant property.

Taxpayers who paid their full-year tax bill during the 1st half tax collection will now have a surplus on their account, as their initial payment exceeded the final amount due after the credit was applied.

• These taxpayers may either apply the surplus to their next tax bill, which will occur automatically, or request a refund of the surplus by check from the County Treasurer.

• If you choose to have the surplus refunded to you, please complete the Surplus Request Form and return to the County Treasurer.

• These forms must be submitted or postmarked by August 29, 2026 in order to be processed. Refund checks will be issued beginning in September, after the second-half tax collection and settlement have been completed.