January 3, 2026
For years, Ohio property owners have felt like they were at the mercy of a "black box" system in Columbus.
The Ohio Department of Taxation often set property values based on broad state data, leaving local auditors with little power to fix inaccuracies.
That officially changed on December 19, 2025, with the signing of the “Flip the Script” Act (House Bill 124). This landmark legislation puts the power back into the hands of the Lucas County Auditor and, by extension, into the hands of property owners.
1. Why This Is a “Game Changer” for Owners
Historically, the state set your property value, and if you or the County Auditor disagreed, you carried the burden of proof to show the state was wrong.
- The “Flip”: Now, the Lucas County Auditor, who knows our neighborhoods better than a bureaucrat 130 miles away, has the first and final say on which home sales are used to determine your property’s value.
- The New Burden: If the state wants to challenge a valuation, the burden of proof is now on them to show the Auditor is wrong. This recognizes that local officials have the best knowledge of property sales in their own counties.
2. Protecting You from “Outlier” Spikes
One of the biggest reasons this is a good idea is that it stops “unvoted” tax hikes caused by skewed market data.
- Accuracy over Averages: Sometimes a house sells for a massive premium because of a unique renovation or a “bidding war” that doesn’t reflect the rest of the block.
- Local Knowledge: Your local Auditor can now exclude these “outlier” sales so they don’t unfairly hike the taxes for every other owner in the neighborhood. This ensures your valuation is based on actual market reality, not a statistical fluke.
3. The 2026 “Inflation Cap”: A Safety Net
This bill was signed alongside House Bill 186, which creates a first-of-its-kind Inflation Cap Credit.
- The 3% Buffer: Starting in the second half of 2026, if property values grow faster than the rate of inflation, a tax credit will be triggered to prevent your bill from skyrocketing purely due to a hot market.
- A Check on Tax Spikes: This initiative saves Ohio property owners nearly $1.7 billion over the next three years by preventing school district property taxes from exceeding the rate of inflation.
The Landlord “Trade-Off”
While the Flip the Script Act is a massive win, the state is also phasing out the 10% non-business tax credit for rental properties to help fund a nearly $800 million expansion of the owner-occupied tax credit.
- The Strategy: Because your tax credits are being reduced over the next few years, ensuring your base valuation is accurate via the “Flip the Script” rules is now your #1 defense against rising overhead.
Protect Your Portfolio with Buckeye Northwest Realty
At Buckeye Northwest Realty, we don’t just manage buildings; we manage investments.
We stay on the leading edge of Ohio’s legislative changes to ensure our owners are positioned for maximum ROI in 2026.
Are you concerned about your recent Lucas County valuation or the phase-out of your 10% tax credit?
Contact us at buckeyenw.com/contact or call us today at (419) 385-5555 to discuss your 2026 portfolio strategy!
Disclaimer: Informational purposes only. This is not legal or tax advice. Laws are subject to change; please consult with a qualified professional regarding your specific property and tax situation.
