HOUSE BILL 186

House Bill 186, which came into effect on March 20, 2026, made a couple of changes which will affect property tax bills moving forward.

1. The calculation for the 20-mill floor is now limited to inflation. • State law requires school districts to collect at least 20 mills in property taxes specifically for general operating purposes—causing automatic tax increases even without voter approval when the valuation increases and the effective rate of the levy decreases below 20 mills. • Going forward the school districts will not receive the full impact of the 20-mill floor increase. Instead, the increase will be indexed to inflation.

2. The bill also includes a one-time adjustment that looks back at recent tax years and recalculates them as if the inflation cap had already been in place.
   • You will see the impact of this in the form of a credit on your second halftax year 2025 tax bill payable in July of 2026.

3. Another provision of HB 186 will not show up until property tax bills are mailed in 2027 (for tax year 2026) and later. The non-business tax credit (10% on any levy passed prior to 2013), is applied to residential and agricultural real estate. Homeowners who live in their homes can also get the owner-occupied credit (2.5% on any levy passed before 2013). HB 186 gradually eliminates the non-business credit on rental and investment properties, moving those dollars to owner-occupied homes instead.

Here is how that change rolls out over time and how it will affect your tax bills beginning in calendar year 2027:

The documents below provide information regarding property tax overpayments resulting from adjustments made under HB 186. This document contains a list of taxpayers who received overpayment checks exceeding $50.00. The list is organized in alphabetical order. OVERPAYMENT LIST

This document contains a list of parcels with overpayments of less than $50.00. These amounts will be applied as a credit to the first-half 2026 real estate tax bills, payable in calendar year 2027. The list is organized in alphabetical order. SURPLUS LIST