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Rep. Hall Votes on Budget Plan that Delivers Historic Property Tax Relief for Ohioans, Implements Nation's Second Lowest Income Tax Rate

Schools to receive record state funding
June 25, 2025
Thomas Hall News

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COLUMBUS – State Representative Thomas Hall (R-Madison Twp.) today announced that the Ohio House of Representatives approved the conference committee report for Am. Sub. House Bill 96 –the State Operating Budget. The budget plan, which allocates funding for state programs and operations for the next two years, includes provisions that aim to protect freedom, family and fiscal responsibility – approving historic property tax relief for Ohioans, implementing a flat tax rate and providing a record amount of state funding for school districts. 

“I am proud to vote yes on a budget that delivers much-needed property tax relief to Ohioans,” said Hall. “I am also grateful for systematic reforms that give clarify to Ohio voters when voting on tax levies.”

DELIVERING HISTORIC PROPERTY TAX RELIEF TO OHIOANS 
Ohioans all over the state have called on the legislature to tackle rising property taxes, and members of the Ohio House are providing historic relief for taxpayers as soon as January 2026. The budget implements a process for schools that carry forward more than 40% of their general budget in unspent cash at the end of each year to be distributed back to Ohioans in property tax relief. District cash carryovers have increased year-over-year from $3.6 billion to $10.5 billion since tracking began in 2012. Utilizing carryover data from 2024, and assuming school district carryover amounts remain similar, the plan will save Ohioans over $2.5 billion in property taxes starting next year. 

LANDMARK PROPERTY TAX REFORM 

In addition to billions in direct relief, the bill makes a variety of structural changes that aim to promote transparency, update the levy process and enhance checks and balances for property tax rates at the local level, ensuring that taxpayers see more direct control over ballooning property tax bills. The bill also provides direct relief to residential homeowners by allowing the Board of County Commissioners to provide up to a 2.5% owner-occupancy tax credit on a taxpayer’s bill (modeled off the state’s current owner-occupancy credit) for all residents and a permissive homestead exemption for those who qualify for the state homestead exemptions.

A STRONGER ECONOMY WITH A FLAT TAX
Republicans in the legislature have continued to phase down the state income tax in recent years, providing savings for Ohioans. The new budget plan takes the top tax bracket down from 3.5% to 3.125% in tax year 2025 and down to 2.75% in tax year 2026, and into the future. The move to a flat tax makes Ohio more competitive with surrounding states, simplifies the tax code, and spurs revenue. 

BOOSTING FUNDING FOR OHIO SCHOOLS 

The budget prioritizes the education and well-being of Ohio students, ensuring that school districts are funded through the final phase of the Cupp-Patterson funding model. Ohio public schools will receive nearly $700 million more for public education over the biennium than they received in FY25. 

REVITALIZING LOCAL COMMUNITIES 
House Bill 96 continues to invest in various state initiatives that help solidify Ohio as the best place in the nation to live, work, raise a family and start a business. The bill increases funding for Brownfield Remediation, provides funding to help with blight, continues investments for the All Ohio Future Fund, further expands the Welcome Home Ohio program, and helps address the housing shortage across the state through two new targeted initiatives designed to incentivize additional family home construction. 

SUPPORTING OHIO FAMILIES 
To help families who need assistance paying for child care, the budget establishes the Child Care Choice program, providing $100 million for eligible families, helping more Ohioans cover the cost of needed child care services. The bill also increases funding for the Help Me Grow program, which is a system of supports for pregnant women, caregivers with new babies, and families with young children with developmental delays and disabilities. 

EMPOWERING SCHOOL CHOICE  

House Bill 96 continues the state’s commitment to school choice by increasing the maximum awards for the Autism Scholarship and Jon Peterson Special Needs Scholarships while also establishing an option for parents whose children attend a non-chartered non-public school to utilize an education savings account to help with the cost of their education.  The bill also enhances the state’s current home education tax credit.

BACKING THE BLUE

This budget invests in supporting law enforcement and promoting public safety by providing $65 million over the biennium for local law enforcement training, $21 million over the biennium to support local costs of the MARCS program, which helps equip first responders to better respond to emergency situations and $27 million over the biennium for the Ohio Narcotics Intelligence Center. Additionally, the budget includes $8 million to provide grants to small county volunteer fire departments.

PRIORITIZING WORKFORCE READINESS AND HIGHER EDUCATION 

This budget makes a marked effort to prioritize workforce readiness in Ohio, investing in various higher education programs such as the Governor’s Merit Scholarship, the Choose Ohio First Scholarship, and an increase in the State Share of Instruction by 1% each year, helping lower costs for students at Ohio’s state institutions of higher education. 

PROMOTING HEALTHCARE TRANSPARENCY 
In an effort to promote transparency in the Medicaid program, the bill works to protect taxpayer dollars and eliminate fraud, waste, and abuse through a number of provisions, creating a variety of new reporting requirements that the Ohio Department of Medicaid must follow and ensures that important audits will be conducted on state Medicaid spending. 

CHAMPIONING CONSERVATIVE VALUES

The State of Ohio’s budget plan takes a strong stance on reinforcing conservative values. 

  • Ushers in substantial property tax relief beginning in 2026. 
  • Enacts a flat income tax, making Ohio one of the lowest income tax states in the United States. 
  • Establishes a statewide policy recognizing that there are only two genders. 
  • Excludes the purchase of sugar-sweetened beverages under the SNAP program. 
  • Removes the Governor’s proposed tax increases and several proposed fee increases. 
  • Removes all gaming/gambling expansion provisions. 
  • Requires libraries to keep materials related to sexual orientation or gender identity out of the view of minors. 
  • Eliminates some affirmative action requirements for state contracts. 
  • Prevents menstrual products from being distributed in men’s bathrooms in state-owned buildings. 
  • Makes substantial improvements and enhancements to Ohio’s school choice opportunities for students. 
  • Prohibits Medicaid funds from being used for DEI programs, combatting discrimination and indoctrination. 
  • Includes $10 million each FY for the Parenting and Pregnancy Program and establishes a $750 tax credit for pregnancy resource center donations, defending the sanctity of life and supporting pregnant mothers. 
  • Expands the Ohio Department of Health’s report providing statistics for all abortion reports
  • Prohibits state agencies from flying any flag except the American flag, state flag, POW/MIA flag, or a flag with an official state agency logo
  • Prohibits state funds from being distributed to youth shelters that promote or affirm social gender transition.

¿House Bill 96 now goes to the Governor for consideration.