Rep. Thomas Votes on Budget Plan that Delivers Historic Property Tax Relief for Ohioans, Implements Flat Tax

State Representative David Thomas (R-Jefferson) 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. 

“We did the largest reform effort since the current property tax crisis in Ohio to alter how the system works and help property owners,” said Thomas. “Empowering the budget commission to lower tax rates, creating a County Homestead and Owner Occupancy Credit Piggyback to double savings, capping school carryovers, making the 20 Mill Floor a true tax rate, eliminating confusing levies like emergency, replacement, and substitute. These changes and much more will make a huge difference for Ohioans. I wanted to go stronger and did not get everything I believe our taxpayers need, but this is a huge step and I pledge to continue pushing on this issue to help our property owners.”

“I am pleading with our local entities to lower their property tax rates, look for cost cutting or other revenue sources, and respond to the tax crisis we are in with the tools given to local governments. Our County Commissioners can give instant property tax relief by enacting the Homestead and Owner Occupancy Piggyback to help our seniors, disabled, and homeowner population as one direct way we are pushing for reforms,” said Thomas.

“We also secured funding for Mosquito Lake, the Pipeline Project Study along Route 11, Youngstown Airforce Base dollars, and more of our state tax dollars coming back to Northeast Ohio,” said Thomas. 

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. 

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. 

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.