HB 186 and the Inflation Cap Credit in Stark County
What Ohio’s House Bill 186 changes on Stark County property tax bills, which school districts get the new credit, and what homeowners and landlords should expect.
House Bill 186, signed December 19, 2025 and in effect from March 20, 2026, changes Stark County tax bills in two ways. First, it created the Inflation Cap Credit, which limits how fast school taxes on the 20-mill floor can grow. In Stark County it first appeared on the second-half 2026 bills, due July 15, 2026, and it’s worth between $0 and $109.74 for every $100,000 of value, depending on your school district. Second, from tax year 2026 it phases out the 10% non-business credit for homes and raises the owner-occupancy credit for people who live in their homes. Both credits are applied automatically, but the owner-occupancy credit needs a one-time application.
| Law | House Bill 186, 136th Ohio General Assembly |
|---|---|
| Signed / effective | December 19, 2025 / March 20, 2026 |
| Inflation Cap Credit in Stark County | First on second-half 2026 bills (tax year 2025), listed as “Inflation Cap Credit.” Automatic. |
| School districts with a credit | 15 of 20, plus the Stark County Joint Vocational School District |
| Credit changes for homes | From tax year 2026: non-business credit falls to 0 by 2029; owner-occupancy credit rises to 15.38% by 2029 |
| To get the owner-occupancy credit | File form DTE 105C with the Auditor by December 31 |
Sources: Stark County Auditor, Inflation Cap Credit memo and Ohio Legislative Service Commission, HB 186 final analysis, checked Sep 27, 2026.
The Auditor’s HB 186 memo
The county’s explanation of the Inflation Cap Credit, with the credit for every school district. PDF, opens in a new tab.
Why the 20-mill floor raised taxes
Ohio’s reduction factors normally stop voted levies from collecting more when property values rise. But school districts are guaranteed at least 20 effective mills for current expenses, the so-called 20-mill floor, and joint vocational school districts are guaranteed 2 mills. When a district’s levies are reduced all the way to that floor, the reductions stop, and from then on its collections rise with values. After the 2024 reappraisal lifted Stark County home values sharply, bills in floor districts rose with them.
HB 186 caps that growth. For districts on the floor, collections from the floor can rise only as fast as inflation, measured over the previous three years using the GDP price deflator. Any tax above that cap comes back to owners as the Inflation Cap Credit.
Credit by school district
The county’s memo lists the credit for each $100,000 of appraised value. Your school district is part of your taxing district, shown on your tax bill.
| School district | Credit per $100,000 |
|---|---|
| Alliance City | $70.59 |
| Brown Local | $103.06 |
| Canton City | $0.00 |
| Canton Local | $33.81 |
| Fairless Local | $109.74 |
| Jackson Local | $45.29 |
| Lake Local | $0.00 |
| Louisville City | $54.03 |
| Marlington Local | $36.22 |
| Massillon City | $51.03 |
| Minerva Local | $59.66 |
| North Canton City | $0.00 |
| Northwest Local | $45.83 |
| Osnaburg Local | $107.44 |
| Perry Local | $33.28 |
| Plain Local | $0.00 |
| Sandy Valley Local | $49.90 |
| Tuscarawas Valley Local | $77.25 |
| Tuslaw Local | $75.09 |
| Waynedale Local | $0.00 |
| Stark County Joint Vocational | $8.45 |
| Buckeye Joint Vocational | $0.00 |
| Wayne County Joint Vocational | $0.00 |
Source: Stark County Auditor, Inflation Cap Credit memo, checked Sep 27, 2026.
A $0.00 means the county found no credit due in that district. The credit only applies where the floor pushed collections up faster than inflation.
When the credit applies in Stark County
The Auditor’s memo says the credit was applied to 2026 second-half bills, the tax year 2025 bills due July 15, 2026, and that this first credit accounts for inflation from tax years 2024 through 2026. Because Stark County reappraised in 2024, the law gives it a temporary credit calculated as if HB 186 had been in effect then. That temporary credit runs until the county’s next update. The credit is then recalculated every three years, in each reappraisal or update year. For Stark County the next one is tax year 2027.
The credit is automatic. You don’t apply for it, and it shows on your bill as a separate line.
The new credits for homeowners and landlords
HB 186 also rebalances the two long-standing rollback credits from tax year 2026 (bills paid in 2027). The non-business credit, 10% of qualifying levies, phases out for homes and other residential property. The owner-occupancy credit, 2.5%, rises for homes the owner lives in. Farmland keeps the full 10%.
| Tax year | Non-business | Owner-occupancy | Owner-occupied home, total |
|---|---|---|---|
| 2025 and earlier | 10% | 2.5% | 12.5% |
| 2026 | 7.5% | 5.70% | 13.20% |
| 2027 | 5% | 8.92% | 13.92% |
| 2028 | 2.5% | 12.15% | 14.65% |
| 2029 | 0% | 15.38% | 15.38% |
Source: Ohio Legislative Service Commission, HB 186 final analysis. The rates apply to levies that qualify for the credits, mainly those approved before September 29, 2013, so the share of your total bill is smaller.
The result: homeowners who live in their homes get a slightly larger credit each year, while owners of rentals and second homes lose the non-business credit by 2029.
A worked example: $250,000 in Jackson Township
Take the owner-occupied $250,000 home in Jackson Township with Jackson Local Schools (district 130) from our property tax guide. Jackson Local’s Inflation Cap Credit is $45.29 per $100,000, so this home’s credit on the second-half 2026 bill was 2.5 × $45.29 = $113.22.
The rollback changes work on the tax after reduction factors, $4,577.56 for this home in tax year 2025. Holding everything else steady:
- Non-business and owner-occupancy credits, tax year 2025
- $406.48
- The same credits at tax year 2029 rates
- $500.13
- Larger credit each year by 2029
- $93.66
If the same house were a rental, its non-business credit of $325.19 would shrink each year and be gone by tax year 2029, adding that amount to the bill. Real bills will also move with new levies, renewals and the 2027 update, so treat these as illustrations of the law, not forecasts.
What you need to do
- Nothing, for the Inflation Cap Credit. It’s applied automatically where it’s due.
- Check that you have the owner-occupancy credit. It needs form DTE 105C, filed with the Auditor by December 31. As it grows toward 15.38%, missing it costs more each year. Our homestead and owner-occupancy guide explains how to file.
- Tell the Auditor if you move out. A home that stops being your main residence loses the owner-occupancy credit.
The other property tax laws of 2025
HB 186 was signed on December 19, 2025 with four other property tax bills. They took effect in March 2026:
- HB 335 limits growth in collections from unvoted inside millage to inflation, starting in tax year 2026.
- HB 129 counts certain existing emergency and substitute school levies in the 20-mill floor from tax year 2026.
- HB 309 gives county budget commissions more power to reduce levies they find unnecessary, after public hearings.
- HB 124 changes how the state reviews county reappraisals and updates.
A separate campaign to abolish property taxes in Ohio by constitutional amendment didn’t reach the November 2026 ballot. Its organizers said in June 2026 that they would aim for 2027.
Sources: Squire Patton Boggs, Update on real property tax reform (February 2026) and Signal Ohio (June 5, 2026).
Common mistakes
- Expecting the credit in every district. Five Stark County school districts had no credit in the county’s memo.
- Confusing it with homestead. Homestead is a separate exemption for seniors, disabled homeowners and disabled veterans.
- Assuming rentals benefit. The owner-occupancy increase is only for the owner’s main home; rentals lose the non-business credit.
- Reading one year as permanent. The credit is recalculated with each reappraisal or update.
Frequently asked questions
What is the HB 186 inflation cap credit?
A credit that limits how fast school taxes can grow in districts on the 20-mill floor, capping that growth at the rate of inflation. Any tax above the cap is credited back on your bill as the Inflation Cap Credit.
Do I need to apply for the inflation cap credit?
No. It's applied automatically. The owner-occupancy credit, which HB 186 increases, does need a one-time application on form DTE 105C.
When did the credit first appear on Stark County bills?
On the second-half 2026 bills, for tax year 2025, due July 15, 2026.
Why is there no credit in my school district?
The credit only applies where the 20-mill floor pushed collections up faster than inflation. The county's memo lists $0.00 for Canton City, Lake Local, North Canton City, Plain Local and Waynedale Local.
Will taxes on my rental property go up?
Likely, a little. HB 186 phases out the non-business credit for residential property that isn't the owner's main home: 7.5% in tax year 2026, 5% in 2027, 2.5% in 2028 and none from 2029.
Is Ohio abolishing property taxes?
No. A proposed constitutional amendment to abolish property taxes didn't make the November 2026 ballot, and its organizers said they would aim for 2027.
Next steps
- Claim the owner-occupancy creditHomestead and owner-occupancy
- See the credit for your homeTax estimator
- Your district’s rateTax rates table
- How bills are worked outProperty tax guide
Sources
- Stark County Auditor, Relief on your property tax bill through new Ohio law (ICC memo) (credit by district, timing, 20-mill and 2-mill floors)
- Ohio Legislative Service Commission, H.B. 186 final analysis, January 16, 2026 (effective date, credit method, rollback schedule, temporary credit)
- Squire Patton Boggs, Update on real property tax reform (signing dates and the companion bills)
- Signal Ohio, Ohio property tax abolition campaign drops 2026 ballot bid
- Stark County 2025 rates of taxation (district 130 figures)
All sources checked Sep 27, 2026.
Stark Auditor Guide is an independent guide published by Abu Hurera LLC. It is not the Stark County Auditor’s office. Always confirm deadlines and amounts with the official office before you act.