Cities and Villages Sound Off on Inside Millage
Vol. III, No. 34 - The Ohio Municipal League tells the story of how removing inside millage would impact the state's cities and villages
Last week, this publication took a strong look at House Bill 335, a piece of legislation that attempts to reform Ohio’s property taxes in many different ways. One way, that has turned to be one of the most controversial, is to elimiate “inside millage” on Ohio’s poperty taxes.
Bascially, inside millage is money that local governments in Ohio can collect from property taxes without asking voters first1. Think of it like a guaranteed allowance that helps pay for basic services like police, fire departments, and road repairs. The Ohio Constitution allows up to 10 mills, which equals 1% of your property's taxable value, to be collected this way.
Right now, this money is split between different local governments including counties, cities, school districts, and townships who all get a piece of the pie. For many communities, especially smaller ones, this inside millage money is crucial for keeping their doors open and services running.
The Ohio Municipal League Study: What Local Leaders Are Saying
The Ohio Municipal League recently asked cities and towns across Ohio to share how they use inside millage money and 160 cities and villages responded. What they found could easily worry every Ohio resident who cares about their community's future.
The Numbers Tell a Scary Story
More than 8 out of 10 communities said they would have to cut or completely eliminate important services if they lost inside millage money. Over half said losing this funding would severely damage their budgets. The money these communities collect ranges from nothing to over $35 million, but most collect between $100,000 and $10 million each year.
For most cities and towns, inside millage makes up between 5% and 20% of their general fund money. But some communities depend on it for 100% of their funding. This means some places could literally shut down if House Bill 335 passes.
What Services Would Be Cut?
Communities told the Ohio Municipal League that losing inside millage would force them to cut police protection, fire and emergency medical services, street maintenance and snow removal, basic government operations, and parks and recreation programs. Many communities said they would have to lay off workers, including police officers and firefighters. Some warned that emergency response times would get longer and roads would fall apart faster.
House Bill 335: A Threat to Ohio’s Communities
Representative David Thomas has introduced House Bill 335, which he calls "The Property Tax Relief Now Act". The bill promises to save Ohio property owners $3.5 billion by eliminating inside millage for most local governments. Only townships would keep their inside millage under this plan.
The Promise vs. The Reality
Supporters say the bill will lower property taxes and give voters more control. They argue that when property values go up, your taxes won't automatically increase as much. Representative Thomas claims this addresses the "crisis" of rising property taxes over the last five years.
But local leaders and experts warn the reality is much different. The bill would strip away $3.5 billion from local governments without providing any replacement funding; forcing local governments to go to the ballot box asking for replacement funding. School districts alone would lose $1.5 billion, which could eliminate 20,000 teaching jobs statewide.
Why Local Leaders Are Worried
Kent Scarrett from the Ohio Municipal League explains that inside millage provides "vital, stable funding" for core services. He points out that 153 local governments rely completely on inside millage funding. Without it, these communities would face service cuts, public safety layoffs, delayed infrastructure repairs, and more frequent requests for voter-approved tax increases. Warren County Auditor Matt Nolan put it bluntly when he said "It's the end of county government as we know it".
What This Means for You and Your Community
If House Bill 335 becomes law, you might see lower property taxes on your bill. But you'll likely pay the price in other ways.
Reduced Safety: Fewer police officers and firefighters means slower response times when you need help.
Worse Roads: Less money for street maintenance means more potholes and dangerous driving conditions.
Higher Other Taxes: Communities will likely ask voters to approve new income taxes or sales taxes to make up for lost revenue.
Reduced Services: Parks, recreation programs, and other quality-of-life services would likely disappear first.
The Real Impact on Schools
According to critics, House Bill 335 doesn't just hurt cities and counties; it also targets schools. The bill would eliminate inside millage for school districts, which currently provides about half of all inside millage revenue statewide.
Upper Arlington Schools nearly Columbus would lose $16.7 million annually, which is more than 10% of their operating budget. Princeton City Schools near Cincinnati warns the bill would force "the largest K-12 funding cuts in state history". Schools across Ohio are already warning about potential layoffs and program cuts.
Why You Should Keep Watching House Bill 335
This bill is moving fast through the Ohio Legislature. It's being considered by the House Ways and Means Committee and could be included in the state budget, that must be adopted in one week — by July 1st. That means it could become law without the thorough review such a major change deserves.
The Ohio Municipal League study shows that eliminating inside millage would hurt communities across Ohio, especially smaller towns with fewer options for raising money. While the promise of lower property taxes sounds good, the cost in reduced services and community safety could be much higher.
Your local community depends on inside millage to provide basic services that keep you and your family safe1. Before this funding source disappears forever, make sure your state representatives understand what's at stake in your town.
City Wants YOUR Input on Park Improvements
Now is the time for Troy residents to get involved and advocate for the changes that will truly benefit the community. Your input will help ensure that the city’s limited resources are invested where they are needed most, creating parks and recreation facilities that reflect the real priorities of Troy’s families and youth. Those wanting to participate in the survey can go to: www.troyohio.gov/parkplanning/
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