Clinton County Auditor Announces HB 186 Property Tax Refund Checks
Clinton County Auditor Terry Habermehl announced today that refund checks will be issued to many taxpayers who overpaid their real estate taxes earlier this year as a result of adjustments required under Ohio House Bill 186 (HB 186).
"These refunds result from recent changes to Ohio property tax law through House Bill 186, which created a new Inflationary Cap Credit (ICC)," said Habermehl. "The law was enacted after many Tax Year 2025 property tax calculations had already been completed, resulting in adjustments that were later applied to second-half Tax Year 2025 property tax bills payable in Calendar Year 2026."
Countywide, the Inflationary Cap Credit reduced property taxes by approximately $3.65 million across more than 24,000 real estate and manufactured home parcels in Clinton County.
HB 186 also required a one-time adjustment that recalculated certain prior tax years as if portions of the new credit structure had already been in place. Taxpayers received the resulting credits on their second-half Tax Year 2025 tax bills.
"The legislation did not provide specific direction regarding how counties should handle overpayments resulting from these credits," Habermehl explained. "After reviewing several options, our office determined that returning larger overpayments directly to taxpayers was the most appropriate course of action, allowing property owners to decide how best to utilize those funds."
Approximately 2,347 refund checks totaling nearly $484,000 will be issued countywide. The average refund is approximately $206, with a median refund of approximately $165.
For overpayments under $50, the administrative costs associated with processing and issuing individual refund checks outweighed the benefits of doing so. Those amounts remain credited to the affected parcels and will automatically reduce future property tax obligations. Approximately 2,107 parcels fall into this category, representing approximately $32,845 in future tax credits, with an average credit balance of approximately $16.
One significant component of HB 186 involved changes to the way the state's longstanding 20-mill floor is applied to school funding. Prior law required school districts to receive at least 20 mills (2% of assessed value) for general operating purposes. In many circumstances, this resulted in additional tax collections when property values increased and tax reduction factors would have otherwise lowered the effective tax rate. HB 186 established a new Inflationary Cap Credit intended to limit a portion of those increases.
Based on Clinton County property values and tax rates, the estimated school-related reduction attributable to the Inflationary Cap Credit totaled approximately $3.64 million, including:
• Wilmington City School District — $1,646,603.92
• Blanchester Local School District — $543,841.40
• Clinton-Massie Local School District — $518,187.08
• Great Oaks Career Campuses — $432,839.70
• East Clinton Local School District — $415,334.26
• Lynchburg-Clay Local School District — $48,855.58
• Greeneview Local School District — $23,861.76
• Fayetteville-Perry Local School District — $3,439.54
• Greene County Career Center — $2,838.92
• Fairfield Local School District — $616.94
Total School-Related ICC Reduction: $3,636,419.10
Another provision of HB 186, effective beginning in 2026, gradually shifts the benefit of the non-business property tax credit away from rental and investment properties and toward owner-occupied residences. Over time, this change is intended to increase tax relief for homeowners who both own and occupy their homes.
"We understand Ohio's property tax system can be complex, and HB 186 introduced significant changes that continue to be implemented across the state," Habermehl said. "We hope these refund checks provide some benefit to taxpayers while ensuring the credits created by HB 186 are properly returned to property owners."
