Rep. Craig Votes on Budget Plan that Delivers Historic Property Tax Relief for Ohioans, Implements Flat Tax
COLUMBUS – State Representative Meredith Craig (R-Smithville) 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.
“House Bill 96 is a step in the right direction for the state of Ohio,” said Craig. “Our constituents have asked for tax relief, and this bill delivers. By flattening the income tax and increasing transparency in the property tax system, we’re helping Ohioans keep more of their hard-earned money, spurring investment and growth for years to come.”
DELIVERING HISTORIC PROPERTY TAX RELIEF TO OHIOANS
Ohioans all over the state have called on the legislature to address rising property taxes, and members of the Ohio House are delivering historic relief for taxpayers beginning as soon as January 2026. The budget includes a provision requiring school districts that carry forward more than 40% of their general fund budget in unspent cash at the end of each fiscal year to direct those excess funds toward property tax relief. Since 2012, district cash carryovers have increased significantly—from $3.6 billion to $10.5 billion. Based on 2024 carryover data and assuming similar balances going forward, the plan should save Ohioans over $2.5 billion in property taxes starting next year. Contact your local school district to ask about its current cash carryover balance and whether it plans to offer property tax relief or use those funds for capital projects.
LANDMARK PROPERTY TAX REFORM
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.
Beyond historic tax reform and substantial investments in education, the budget plan includes numerous other essential initiatives.
SUPPORTING OHIO FAMILIES
To help families who need assistance paying for child care, the budget establishes the Child Care Choice program, providing $100 million each fiscal year 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.
SUPPORTING FIRST RESPONDERS
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.
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.
House Bill 96 now goes to the Governor for consideration.