By Christian M. Williams, Esq. and Bradley A. Novak, Esq.
The Ohio General Assembly has made clear their intent to reform the real property tax system throughout the State. Notably, the General Assembly has increased county budget commissions’ statutory authority with regard to reviewing budgets, distributing property taxes, and reallocating millage. This increased authority has the potential to result in millions of dollars in property tax revenue lost by public school districts across the state.
This article will discuss the newly established authority of county budget commissions, the implications for school districts, and appeal rights that school districts need to be aware of.
1. House Bill 309 – A “New” County Budget Commission
On December 19, 2025, Governor DeWine signed House Bill (HB) 309, relating to county budget commissions’ authority to review subdivision levies and tax budgets. Effective March 30, 2026, and as a result of HB 309, county budget commissions will have explicit statutory authority to annually adjust levy collections for any levies that do not require approval without modification to avoid unnecessary or excessive collections. Under R.C. 5705.32 as amended, “unnecessary collections” is defined as “collections from a tax beyond the reasonably anticipated financial needs of the taxing authority for the specific purpose of the tax after accounting for current fund balances, projected expenditures, and other available funding sources.” Further, “excessive collections” is defined as “collections from a tax in an amount or at a rate that exceeds what is required to provide services at a level that is consistent with statutory obligations.”
Pursuant to amendments to R.C. 5705.31 under HB 309, the most notable of the school district levies that are not subject to approval without modification are levies outside of the ten-mill limitation (outside millage) after the first year they are levied and so long as they are not a renewal of an existing tax. In other words, county budget commissions are now permitted to modify collections on outside millage (after the first year it is levied and so long as it is not a renewal) if the commission determines that such levies result in unnecessary or excessive collections.
2. Implications for School Districts
District treasurers and administrators should be prepared to attend and testify at county budget commission hearings regarding details of the district’s finances and the necessity of levy collections. Notably, county budget commissions across the state are already scheduling hearings in the coming months relating to the current budget cycle, with district tax budgets due on January 20. These commissions are requiring extensive documentation to be submitted prior to the hearing, including, generally, records reflecting a cash flow and liquidity analysis; fund balance details and restrictions; levy performance and revenue dependency analysis; expenditure driver and cost structure; debt and long-term obligations; forecast assumptions and sensitivity analysis; enrollment and demographic trends; corrective actions and fiscal controls; capital and maintenance planning; and management narratives.
Accordingly, districts will now not only need to establish their budgets within the statutory timeframes but will also need to prove to their applicable county budget commission at a hearing that property tax collections are necessary and are not excessive.
3. Challenging Budget Commission Action – Understanding School Districts’ Right to Appeal
With these statutory changes and the increased discretion of county budget commissions, it is vital for districts to understand their appeal rights with regard to county budget commission actions and determinations. Under R.C. 5705.37, the taxing authority of any subdivision, including school districts, that is dissatisfied with any action of a county budget commission may, through its fiscal officer, appeal to the Board of Tax Appeals (“BTA”) within thirty (30) days after receipt by the subdivision of the official certificate or notice of the budget commission’s action. In order to appeal, a district must file a notice of appeal, either in person or by certified mail, express mail, or authorized delivery service, with both the BTA and the applicable county budget commission. The BTA must consider a properly and timely filed notice of appeal “de novo” and “forthwith.” In other words, the BTA must review the county budget commission’s action anew, without giving any deference to the county budget commission determination, and must review such actions in an expeditious manner.
Notably, a taxing authority’s failure to fully comply with the timeframes and filing requirements of R.C. 5705.37 will divest the BTA of jurisdiction and result in a dismissal of the appeal. Accordingly, it is essential that districts understand their appeal rights, the applicable timeframes for appealing a county budget commission’s actions, and the particular filing requirements under R.C. 5705.37.
4. Conclusion/Important Takeaways
Increases in county budget commission discretion over tax budgets and tax collections have the potential to result in the loss of millions of dollars in tax revenue that would previously go to districts without modification and without the need to prove necessity. Thus, it is of the utmost importance that districts understand the county budget commission process, strategies that can be used to prove collections are necessary, and the ability to and procedure for appealing county budget commission action.