Families in the Lakota Local School District will get nothing from a new property tax credit that's saving some Butler County homeowners more than $100 per $100,000 of appraised value.
The Inflation Cap Credit, created by Ohio House Bill 186, first appeared on second-half 2025 property tax bills (due in 2026). It automatically reduces school district property taxes in districts that have hit Ohio's 20-mill floor. Lakota has not reached that threshold, according to a joint guide the Butler County Auditor's Office and Treasurer's Office released Tuesday, July 22.
That means families across the roughly 17,000-student district, spanning West Chester Township and Liberty Township, will see a line item reading "Inflation Cap Credit: $0.00" while neighbors in other Butler County districts pocket savings. Madison Local School District residents receive an estimated $122.50 credit per $100,000 of appraised value. Hamilton City School District families get $114.16. Middletown City School District: $120.28. New Miami Local School District: $72.40.
Why Lakota doesn't qualify
The 20-mill floor is the point at which Ohio law stops allowing tax reduction factors to shrink certain voted operating levies. Once a district hits that floor, property taxes on those levies can climb as home values rise. HB 186 caps that growth at the rate of inflation and credits taxpayers for any excess.
Lakota's operating levies have not reached the 20-mill floor. The district has not asked voters for an operating levy since 2013, according to district records. Because Lakota's levies remain below the threshold, there is no inflation-driven overage to credit back.
Fairfield City School District is the only other Butler County district in the same position.
A small credit may still apply
Lakota families aren't entirely shut out. Properties in the district may still qualify for the joint vocational school district portion of the credit. The Butler County JVSD credit is estimated at $12.16 per $100,000 of appraised value, according to the auditor's guide.
The credit is calculated automatically. Homeowners do not need to apply.
Connection to the November 2026 bond issue
The credit's absence lands as Lakota prepares to ask voters for money. Board President Kelley Casper said at the board's May 20 meeting that cost was the top concern voters raised after a larger bond issue failed in November 2025.
On June 9, the Lakota Board of Education unanimously approved placing a 2.2-mill bond issue on the November 2026 ballot to fund phase one of the district's $300 million Master Facilities Plan. The Ohio Facilities Construction Commission would contribute $77 million, lowering the local share to $223 million.
The new bond would not begin collections until 2029, when an existing 2.23-mill bond expires. Because it replaces expiring debt at the same millage, the district says the bond would not add to property tax bills.
What to do if you already paid
Homeowners who paid their 2025 taxes in full before the credit was applied can request a refund by check through the HB 186 Refund form on the Butler County Treasurer's website. Otherwise, the overage will be applied to the next tax bill automatically.
Questions about the credit go to the Butler County Auditor's Office at 513-887-3154 or [email protected]. Refund and payment questions go to the Treasurer's Office at 513-887-3181 or [email protected].
