Tax rate

Ohio's new Inflation Cap Credit, created under House Bill 186, could reduce part of some Cuyahoga County property-tax bills following the county's 2027 property-value update. The law, in effect since March 20, targets revenue growth tied to Ohio's 20-mill floor rule, under which school districts can see additional revenue from rising property values once state-mandated tax-rate reductions bottom out. The credit compares floor-related tax revenue to an inflation-indexed benchmark based on the federal GDP deflator; if revenue exceeds that benchmark, qualifying residential, agricultural, or business property receives a credit, generally for the update year plus two more tax years.

The credit is narrow: it applies only to certain school taxes affected by the floor calculation, not to county, municipal, library, Metroparks, or community college levies, and it doesn't cap total bills or offset new-construction taxes. A related law, House Bill 129, changes which levies count toward the 20-mill floor starting in 2026, meaning 2024 floor-status data can't predict 2027 outcomes. Actual credit amounts won't be known until Cuyahoga County finishes its update and the state calculates new tax rates, with results appearing on bills payable in 2028.

Harris County Commissioners Court voted Thursday to raise the county's property tax rate, a move that will increase tax bills for homeowners and other property owners across the county. Commissioners Leslie Briones, Adrian Garcia and Rodney Ellis approved the increase, which residents cannot directly control but can offset by ensuring they claim all exemptions for which they qualify.

Experts point to three key exemptions: the homestead exemption for a principal residence, which Harris County supplements with a 20% optional homestead exemption; the over-65 exemption, which varies by taxing jurisdiction; and the disability exemption, which school districts must offer at a minimum of $10,000 (homeowners generally cannot claim both over-65 and disability exemptions). Exemptions lower taxable value but don't eliminate tax bills, which still depend on rates set by local taxing entities.

Homeowners are also advised to keep property records current ahead of the next appraisal protest period. Analysts note the rate hike could ripple beyond homeowners, raising costs for businesses that may pass expenses on to consumers through higher prices.

Harris County Commissioner Adrian Garcia says local property tax increases stem largely from federal and state policy decisions rather than county spending. He points to Texas's continued refusal to expand Medicaid under the Affordable Care Act, which has forfeited more than $184 billion in federal funds since 2016, according to the Urban Institute, leaving Harris Health, the county's safety-net hospital system, to absorb costs for uninsured patients.

Garcia also cites federal Medicaid cuts under Trump's tax and spending legislation, which the Kaiser Family Foundation estimates will reduce federal Medicaid spending by $911 billion over a decade, potentially adding 10 million uninsured Americans per the Congressional Budget Office. Harris Health reported $179 million in added indigent care costs last year. A new state law exempting billions in business property from taxation, plus unfunded state mandates on elections and courts despite a $24 billion state surplus, further shift costs to homeowners, Garcia argues, even as county leaders work to control spending.

Colorado voters will face two competing, conflicting ballot initiatives in November that would reshape the state's income tax system. Initiative 195 would replace the state's flat tax with a six-tier structure, cutting rates for income under $100,000 while raising them for earnings above $500,000, up to 8.4% on income over $1 million. Backers, including New Era Colorado, say it would generate roughly $2 billion annually for K-12 education, health care and child care. Initiative 233, backed by Advance Colorado, would instead cap the current flat rate at 4.4%, with supporters arguing the state budget is already growing faster than residents' wages.

Under Colorado law, if voters approve both conflicting measures, the one with more votes prevails, but only where the two directly conflict; other provisions could remain in effect, likely setting up a legal fight over implementation.

A New York Post opinion piece by the Manhattan Institute's Christopher Rufo and City Journal's Kenneth Schrupp highlights the financial and political scale of California's public-sector unions. The report finds the state's 10 largest public-sector unions collectively collected more than $1 billion in dues and fees in the year ending 2024, with combined membership exceeding 1 million workers — a bloc representing at least 29% of California's 2024 Democratic primary voters.

The piece ties union influence to lobbying wins, including the California Teachers Association's push for a $10 billion school construction bond, and to Proposition 40, a SEIU-backed measure that would impose a 5% tax on billionaire assets, with proceeds directed largely to Medi-Cal and health programs. The authors argue this activity compounds fiscal pressure as California faces a projected $14 billion structural deficit for 2026-27 and more than $265 billion in unfunded pension liabilities, raising the stakes for upcoming tax and budget ballot measures.