Bill impacts 2025 second-half property tax bills

MEDIA RELEASE__ Allen County Auditor Rachael Gilroy is providing information to help property owners understand the Inflation Cap Credit created in House Bill 186 that is reflected on the 2025 second-half real estate tax bill, due August 12, 2026.

House Bill 186, enacted by the Ohio General Assembly, made changes to Ohio's property tax laws that affect the calculation of certain property taxes and tax credits. As a result, many taxpayers will notice an Inflation Cap Credit on their second-half 2025 tax bill.

"Our office has received questions from taxpayers regarding the Inflation Cap Credit enacted under HB 186 and how it could affect the next real estate tax payment due," said Auditor Gilroy. "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. Because each parcel is unique, the amount of the credit that may appear on your upcoming tax bill will vary from property to property."

The Inflation Cap Credit is calculated using factors that are specific to each parcel, especially the taxing districts in which the property is located, the increase of that taxing district during the last revaluation of real estate in 2024, and other factors as prescribed by Ohio law. As a result, neighboring properties may receive different credit amounts.

Property owners can review their Inflation Cap Credit by visiting the Allen County Auditor's website at allencountyohauditor.com, searching for their parcel, and viewing the detailed tax information associated with their property.

FREQUENTLY ASKED QUESTIONS

Why do I see an Inflation Cap Credit on my tax bill?

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.

Did House Bill 186 change my property's value?

No. HB 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.

Why is my credit different from my neighbor's?

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.

I live in the Lima City Schools taxing district- Why do I not see an Inflation Cap Credit?

During the last update of property values in 2024, the average property value in the City of Lima’s school district area increased 10%. That rate of increase is lower than the Inflation Cap percentage of 13.8%, as detailed by the Ohio Department of Taxation. Although particular homes may have increased at a greater percentage, the average for the City of Lima’s properties was 10%. Therefore, Lima City school district properties are not eligible.

Can I view the credit online?

Yes. Property owners may visit the Allen County Auditor's website, search for their parcel, and review the detailed tax information, including the Inflation Cap Credit reflected on the tax bill.

What if I already paid my second-half 2025 property taxes?

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 will automatically be carried forward and applied as a credit toward your 2026 first-half real estate tax bill unless you request a refund. The credit will appear on your tax account and reduce the amount due on your next tax bill. If you select the refund option instead of the tax credit, you will need to contact the Allen County Treasurer’s Office.

Who determines my property taxes?

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 Allen 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.

Questions?

Property owners with further questions regarding their property tax bill or the Inflation Cap Credit are encouraged to contact the Allen County Auditor's Office:

Allen County Auditor's Office
301 N. Main Street Lima, Ohio 44801
Phone: (419) 223-8520

Additional property information is available online at allencountyohauditor.com

About the Allen County Auditor's Office

The Allen County Auditor serves as the county's Chief Fiscal Officer, Chief Assessor, Payroll Officer, and Sealer of Weights and Measures. The Auditor's Office is responsible for maintaining property records, administering Ohio's property tax system, and providing fiscal oversight for county government.

Contact: Rachael S. Gilroy, Allen County Auditor

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