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With home prices flattening or declining in many parts of the country, Tri-State homeowners are paying closer attention to how counties assess property values and how states respond through property tax reform.
Concerns about the U.S. housing market intensified after a recent Newsweek report cited analysts warning that home prices could fall in several overheated regions.
The report referenced Zillow data showing that more than half of U.S. homes had lost value year-over-year, a signal that the post-pandemic surge may be unwinding. This trend highlights the need for a comprehensive property tax reform.
For homeowners in Ohio, Kentucky, and Indiana, market softening wouldn’t normally be cause for alarm — except for one key issue: many counties reassessed property values at peak prices in 2021–2023, and tax bills have remained elevated even as real-world sale prices cool.
Peak-Era Assessments Are Colliding With a Market Slowdown
Across the Tri-State, thousands of homeowners saw their assessed values jump sharply during the last appraisal cycle. For example, Hamilton County reported an average increase of more than 28 percent in property valuations in 2023. Warren County’s average increase was similar, and several northern Kentucky counties reported double-digit valuation growth.
But as the market now stabilizes, many taxpayers are still being billed as if their home values are frozen at 2022 peak levels. That mismatch has fueled a spike in appeals and the rise of private services such as AxoH Tax, which help homeowners contest incorrect valuations.
This tension — falling values and rising taxes — has elevated the conversation around property tax reform in all three states.
Ohio Responds With Multiple Property Tax Reform Bills
Ohio lawmakers passed a slate of reforms aimed at slowing or reducing property tax burdens. Four major bills —
HB 186,
HB 129,
HB 309, and
HB 335 — were approved by both chambers in late 2024 and 2025.
Here is what each bill actually does:
- House Bill 186
Creates an “Inflation Cap Credit” to limit how fast certain school taxes can rise and increases the owner-occupancy credit for primary homes. It also allocates state funds so school districts aren’t immediately harmed by lower local revenues. - House Bill 129
Revises how levies apply to the 20-mill floor for school funding, closing loopholes that allowed some levies to avoid the calculation and accelerating tax increases. The Ohio School Boards Association
provides detailed analysis of these changes. - House Bill 309
Expands the authority of county budget commissions to review and reduce excessive inside millage and levy rates — giving local governments more flexibility to reduce tax burdens. - House Bill 335
Caps inside-millage increases during reappraisal years to the inflation rate and enables millage reductions when other local taxes increase, providing balance across revenue streams. This bill is the centerpiece of Ohio’s broader “Property Tax Relief NOW” package.
State estimates suggest these reforms could provide between $2.4 billion and $3 billion in tax relief statewide over several years, according to
Ohio House leadership.
Supporters argue the reforms will help slow runaway tax bills. Critics — including some taxpayer groups — argue the bills adjust the system rather than overhaul it.
Kentucky: A Movement to Abolish Property Taxes on Primary Homes
In Kentucky, frustration has taken a more dramatic form. State Representative TJ Roberts announced a constitutional amendment to abolish property taxes on primary residences and primary vehicles. Roberts’ proposal would not eliminate all property taxes, but it would remove the tax burden from people’s primary homes — one of the most aggressive proposals in the country.
The amendment would need legislative approval and then voter approval statewide. Supporters argue that property taxes punish homeownership and push seniors and young families out of affordable markets. Skeptics question how Kentucky would replace the revenue that currently funds schools, emergency services, and local governments.
Regardless of where residents stand, the proposal is now part of a larger regional conversation about how property taxation should work in the 21st century.
Indiana: Caps Offer Stability, But Assessments Are Rising
Indiana homeowners benefit from statewide tax caps — a 1% cap for primary homes, 2% for rentals, and 3% for commercial properties — outlined in the state constitution. This system keeps tax bills from rising uncontrollably, regardless of assessed value.
However, county auditors have reported that rising assessed values are pushing many households closer to their cap limits, especially in fast-growing counties. The Indiana Legislative Services Agency has studied potential adjustments to ensure assessments reflect current market trends, not outdated peaks. This is the property tax reform most are asking for.
National Trends Highlight the Squeeze on Local Homeowners
Data from the Federal Housing Finance Agency (FHFA HPI) shows that while prices have remained up over five years, short-term declines have begun in several regions.
CoreLogic’s Home Price Insights report also notes slowing growth and increased inventory in formerly overheated markets.
If national prices continue to cool — but local tax assessments remain anchored to expired highs — homeowners could face a widening gap between market value and taxable value. That gap is at the heart of the current push for property tax reform.
The Tri-State Is Entering a New Phase of Tax Debate
Ohio is focused on moderating increases, Kentucky is debating constitutional limits, and Indiana continues to fine-tune an already capped system. But across all three states, the feelings are similar: homeowners want tax bills that reflect current market reality, not the highs of 2022.
As more data emerges and more homeowners organize, property tax reform remains one of the most closely watched political issues in the region.
For now, Tri-State residents appear united on one point: the conversation is just beginning.
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