An insight into tax law changes

SANDUSKY — With House Bill 186 now active, property owners statewide will notice alterations in their property tax bills. The bill, enacted by the Ohio General Assembly, amended Ohio's property tax laws, which affect the calculation of school district property taxes and tax credits for districts at the 20-mill floor. Erie County auditor Rick Jeffrey said that residents in the Edison, Huron and Vermilion school districts will be affected and that many taxpayers in these districts will see an inflation cap credit on their second-half 2025 property tax statements. "Our office has received questions from taxpayers regarding the inflation cap credit appearing on their tax bills," Jeffrey said. "We want property owners to understand that this credit was established by state law and has been calculated in accordance with the requirements of the Ohio Revised Code," Jeffrey said. "Because each parcel is unique, the amount of the credit will vary from property to property." As a result, neighboring properties may receive different credit amounts. Jeffrey said that property owners can review their inflation cap credit by visiting the Erie County auditor's website at auditor.eriecounty.oh.gov, searching for their parcel and viewing the detailed tax information for their property. Property owners with questions regarding their property tax bills or the inflation cap credit are encouraged to contact the auditor's office by phone at 419-627-7746. Here are Jeffrey's responses to frequently asked questions: Q: Why do I see an inflation cap credit on my tax bill? RJ: House Bill 186 created a property tax credit that is reflected on eligible second-half 2025 real estate tax bills. The credit was calculated in accordance with Ohio law and applied during the preparation of your tax bill. Q: Did House Bill 186 change my property's value? RJ: No, House Bill 186 did not change your property's appraised value. Property values are established through Ohio's appraisal and update process. The legislation changed certain tax calculations and credits — not the value of your property. Q: Why is my credit different from my neighbor's? RJ: The inflation cap credit is calculated using parcel-specific information required by Ohio law. Factors such as taxing districts and other statutory calculations determine the amount of the credit. Because every property is different, the credit amount may vary from parcel to parcel. Q: Can I view the credit online? RJ: Yes. Property owners may visit the Erie County auditor's website, search for their parcel and review the detailed tax information, including the inflation cap credit reflected on the tax bill. Q: What if I already paid my second-half 2025 property taxes? RJ: If you paid your second-half 2025 property taxes before the inflation cap credit was applied, you do not need to take any action. Any overpayment resulting from the inflation cap credit of greater than $25 will automatically be refunded to you, and those under $25 will be carried forward and applied as a credit toward your 2026 first-half real estate tax bill. The credit will appear on your tax account and reduce the amount due on your next tax bill. Q: Who determines my property taxes? RJ: Property taxes are based on: • Your property's appraised value • Tax levies approved by local voters • Tax rates are certified in accordance with Ohio law • State-mandated tax reduction factors and credits, including those enacted through House Bill 186. The Erie County auditor's office administers these calculations in accordance with Ohio law but does not establish tax rates or determine which tax levies are submitted to voters.