GoHilliard Intelligence Brief: Ohio Property Tax Reform (HB 124)

Legislation: Ohio House Bill 124 (136th General Assembly)

Short Title: Modify process for property tax sales-assessment ratio studies and reappraisals

Effective Date: March 20, 2026 (Enacted December 19, 2025; applies to Tax Year 2026 forward)

Primary Sponsors: Rep. David Thomas (R-Jefferson), Rep. Thomas Hall (R-Madison Twp.)

Local District Representation: Ohio House District 11 (Serving Hilliard & Dublin)

Executive Summary

Passed as part of a sweeping package of property tax reforms by the Ohio General Assembly, House Bill 124 reshapes how real property valuations are determined during countywide sexennial reappraisals and triennial updates.

Rather than allowing the state Tax Commissioner at the Ohio Department of Taxation (ODT) to dictate blanket property value increases via top-down sales-assessment ratio studies, HB 124 “flips the script.” It reallocates statutory authority back to county auditors—such as the Franklin County Auditor—giving local assessors greater control over which transaction data, neighborhood samples, and time windows are used to benchmark residential and commercial values.

How the District 11 Representative Voted

Ohio House District 11—which encompasses Hilliard and Dublin in northwest Franklin County—is represented by Representative Crystal Lett (D-Hilliard).

• Chamber Vote Date: June 4, 2025

• Floor Action: Third Consideration / Final Passage

• House Vote Result: Passed 93–0 (Unanimous bipartisan passage)

• Rep. Crystal Lett’s Vote: YEA (Voted in Favor)

The measure subsequently passed the Ohio Senate 31–0 on November 12, 2025, and was signed into law by Governor Mike DeWine on December 19, 2025.

Core Mechanics of HB 124: What Changed?

1. Local Control Over Sales-Ratio Studies (R.C. 5715.012):

   • Previously, ODT applied centralized statistical formulas to raw transaction data, often forcing county auditors to impose broad, double-digit percentage hikes across entire taxing districts to satisfy state equalization metrics.

   • Under HB 124, county auditors are granted statutory discretion to exclude outlier transactions, distressed sales, or non-representative post-pandemic spikes, allowing local appraisal models to reflect neighborhood realities more accurately.

2. Abstract Submission Deadlines (R.C. 5715.16 / 5715.251):

   • Advances the statutory timeline for county auditors to submit tentative real property abstracts, giving local taxing entities and school boards a longer window to project assessed valuations before tax rates are set.

3. Expedited Board of Tax Appeals (BTA) Timelines:

   • Mandates that the Ohio Board of Tax Appeals render decisions on property valuation appeals within the tax year in which the filing occurs, curbing multi-year escrow and revenue uncertainty for both property owners and taxing jurisdictions.

What HB 124 Means for Hilliard

+-----------------------------------------------------------------------------------------+
|                                    LOCAL IMPACT MATRIX                                  |
+--------------------------+--------------------------------------------------------------+
| Stakeholder              | Practical Impact                                             |
+--------------------------+--------------------------------------------------------------+
| Residential Homeowners   | Dampens artificial value spikes driven by statewide formulas.|
| Commercial & Hospitality | Enhances credibility of local market comps in reappraisals.  |
| Hilliard City Schools    | Stabilizes assessment volatility against the 20-mill floor.  |
| Franklin County Auditor  | Restores local statutory authority over equalization models. |
+--------------------------+--------------------------------------------------------------+

1. Residential Homeowners & Taxpayers

Franklin County property owners experienced historic valuation increases during the recent reappraisal cycle, which led directly to higher effective tax bills. By shifting the weighting toward local auditor assessments rather than rigid state formulas, future reappraisal cycles will be less susceptible to sudden macroeconomic distortions, offering greater predictability to homeowners along corridors like Cemetery Road, Scioto Darby, and Avery Road.

2. Commercial Real Estate & Hotel Underwriting

For commercial property owners, hotel operators, and mixed-use developers (such as those active in TruePointe and the I-270 corridor), HB 124 reduces valuation disparities between actual property performance and high-level state sales ratios. Furthermore, strict BTA resolution deadlines prevent multi-year appeals from tying up operating cash reserves.

3. School District & Municipal Revenue Synchronization

For the Hilliard City School District and the City of Hilliard, valuation spikes do not translate to windfall revenue on voted levies because of Ohio’s HB 920 tax-reduction factors. However, massive valuation swings complicate effective millage calculations and budget forecasting. HB 124 promotes smoother appraisal trajectories, reducing the year-to-year friction between municipal services, school district operating funds, and local property owners.

GoHilliard Context for Residents

HB 124 operates as the valuation foundation alongside companion measures like HB 129 (which restricts fixed-sum emergency levies and revises the 20-mill floor calculation) and HB 309 (expanding County Budget Commission oversight of voted levies).

For taxpayers and commercial stakeholders across Hilliard, tracking how the Franklin County Auditor implements these discretionary appraisal standards in upcoming tax years will determine the true bottom-line impact on future tax duplicates.