Senate Approves Final Budget Reducing Tax Burden By $1 Billion with Flat Tax and Substantial Property Tax Relief

COLUMBUS—State Senator Steve Huffman (R-Tipp City) and his colleagues in the Ohio Senate approved the state's new Biennium Operating Budget, maintaining the Upper Chamber's commitment to fiscal responsibility to the taxpayers.

"I'm proud the House and Senate included provisions from Senate Bill 3, which I introduced, that results in Ohio's creation of a flat tax," said Senator Huffman. "By creating a flat state income tax and providing significant reform to property taxes, this budget supports every Ohioan. I look forward to seeing the substantial economic benefits of this budget across the 5th Senate District."

"Our constitutionally balanced budget represents an historic investment in the people of Ohio," said Senate President Rob McColley. "Taxes are kitchen table issues for every family, and I'm pleased we completed the mission of substantial property tax and income tax relief." 

The Senate and House worked through the points of difference between each chamber's "as passed" version of the budget in an efficient and effective manner over the last week.

"I am very pleased with the professionalism and good faith negotiations with our colleagues in the House," said Senate Finance Chairman Senator Jerry Cirino. "This budget continues to build the foundation for strong economic growth here at home, because a healthy economy equals a healthy Ohio."

Reducing Income Tax Burden with Fair Flat Tax

The last decade has seen a shift toward reducing the income tax burden on Ohioans. The Senate reached a milestone with the new Operating Budget by implementing the phase-in of a flat income tax.

The 2.75% flat rate will take effect in tax year '26, while tax year '25 will also see an immediate reduction of the highest bracket which will drop from 3.5% to 3.125%.

"When every hardworking Ohioan receives their paycheck all they can see is the significant amount of taxes taken from them," said Senator Huffman. "I'm proud of the progress we have been able to make over the last decade by reducing the overall number of income tax brackets from nine down to two."

Anyone making $26,050 or less will pay ZERO state income tax. 

Acting with Meaningful Property Tax Reform

Ohio homeowners hit with troubling property taxes increases have been adamant about the General Assembly modernizing the property tax system.

Over the years the system began operating outside of the anti-inflationary guardrails as originally intended. Among them, levies that skirted those guidelines are emergency and replacement levies.

"No retired Ohioan should ever have to worry about losing their paid off home due to rises in property taxes," said Senator Huffman. "This budget makes meaningful reforms immediately."

The budget will abolish any new emergency or replacement levies and require improved rules and plain language for future levy requests a school district or local municipality might ask voters to approve.

The Senate also recognized the importance of maintaining home rule and local control on property tax matters by enhancing the role of County Budget Commissions.

Budget Commissions consist of the county prosecutor, auditor, and treasurer, and the budget empowers the commission to review and even reduce the financial impact on property owners.

School districts will be permitted to maintain a 40% surplus for their operating budget carryovers year to year but any excess will have to be returned to the taxpayers. Collectively, Ohio's 611 districts amassed a $10.5 billion cash carryover last year.

Nearly $1 Billion More for K-12 Public Schools

The operating budget builds on the historic investments over the last two budgets that poured more than an additional $3 billion into public education.

This budget adds nearly a billion dollars more into Ohio's public schools.

Every district will receive at least the same amount as FY '21.

77% of districts will receive an increase over what they received in FY '25 in the first year of the budget, and 75% of districts will receive an increase in the second year compared to FY '25.

Districts will also receive additional state aid for significant academic improvement as well as those that have received a 4-to-5 Star rating from the Department of Education and Workforce.

"A modern workforce demands highly qualified employees" said Senator Huffman. "Results matter, and we want to reinforce that message by recognizing the importance of performance in public schools."

The Senate encourages parents to get involved in their schools, and believes that more information is better, especially for voters. That is why, the budget will require candidates for school board races to have their political party affiliation designated on the ballot.

Allowing Televet Services for Ohio

Included within the budget is a provision to allow a licensed veterinarian to conduct veterinary telehealth services. This allows a licensed veterinarian to prescribe drugs or medications through a telehealth visit after establishing a veterinary-client-patient relationship. The patient receiving services must be located in the state in which they are receiving those services.

This provision comes from Senate Bill 60 that was introduced by Senator Huffman earlier this year.

"I'm grateful that pet owners will be able to receive the care needed for their pet in a convenient manner both for the pet and the veterinarian," said Senator Huffman. "This is a common sense idea and I'm proud to see it included within this budget. I know that Ohioans across the Buckeye State will benefit from this provision." 

Investing in Families, Housing, and Childcare

The budget maintains the Senate's $100 million investment to address a shortage of housing in Ohio.

The REDD program will invest $10 million for Residential Economic Development Districts which will help plan for and provide homes for a rapidly growing workforce in metro Ohio that were selected for mega development sites.

$90 million will be directed into a revolving loan fund that will help prepare sites in rural Ohio for infrastructure and housing construction.

Often the geography and lack of site ready areas in southern Ohio makes larger scale housing plans unaffordable for developers compared to places located near larger cities.

The Senate's commitment to Ohio's families continues with a $20 million investment for Ohio's Fatherhood Commission which will run the Responsible Fatherhood Initiative.

"The risk of living in poverty rises when children do not have two parents in their household," said Senator Huffman. "Fathers provide stability in the home when the rest of life seems unstable. This program is vital in teaching young men, who grew-up without a father, how to be a father."

The new budget maintains the General Assembly's commitment to childcare, allocating more than $100 million for the Choice Voucher Program that supports families earning up to 200% of the Federal Poverty Level (FPL).

The budget also increases funding by 19% for early childhood education which provides educational service for children who are at least three but too young for kindergarten. Families earning up to 200% of the FPL qualify for the program, and the investment totals $260 million.

Growing Ohio's Economy By Reducing the Bureaucracy Burden

Ohio's $60.23 billion budget is balanced as required by the Constitution and includes more than $1 billion in tax relief to Ohioans.

It reflects the kitchen table common sense that says the way to grow an economy and a budget is by reducing the burden of bureaucracy that comes with higher taxes and red tape.

Over the last several budgets, reducing the tax burden has resulted in economic growth and additional revenue for the state.

Consumer spending represents two-thirds of the economy, and when people have more discretionary income for their families, Ohio becomes a great place to live, work, and raise a family.

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