Tax and Finance

Proposals to overhaul Ohio’s property tax system are raising alarms among school officials who warn the changes could destabilize local education funding if not paired with a clear, reliable replacement. With more than half of Ohio school funding tied to property taxes, district leaders say sweeping reforms without additional state support could force difficult budget decisions and create uncertainty for communities across the state.

That uncertainty matters for manufacturers, who rely on strong local schools to sustain workforce pipelines and community stability. “Manufacturers need tax reforms that deliver predictability without destabilizing the systems that support workforce development,” said James Lee, managing director of public policy services for the Ohio Manufacturers’ Association. “Strong schools and a competitive tax climate are not competing priorities. Ohio needs solutions that advance both.”

As lawmakers debate tax caps, rollbacks and broader restructuring, manufacturers are watching closely to ensure reforms improve affordability while preserving the foundational services that support long-term investment and economic competitiveness. 1/21/2026

U.S. Small Business Administration (SBA) lending to manufacturers increased 16.7% last year, according to new federal data, a notable jump at a time when higher interest rates and tighter credit conditions have made borrowing more difficult for many businesses.

The growth reflects expanded use of the SBA’s 7(a) and 504 loan programs by small and mid-sized manufacturers to finance equipment purchases, facility improvements and working capital. The data also point to early adoption of newer SBA tools designed to improve access to revolving credit for capital-intensive operations.

Access to predictable financing is especially important for smaller manufacturers in states such as Ohio, where firms often weigh modernization plans against energy costs, permitting timelines and workforce investments. As economic uncertainty persists, reliable capital programs continue to play an important role in supporting manufacturing growth and job creation. 1/22/2026

The Ohio Department of Taxation has issued new guidance for Tax Year 2026 that manufacturers should factor into payroll, compliance and investment planning. Effective Jan. 1, the withholding rate on bonus and supplemental compensation drops to 2.75%, aligning with Ohio’s flat income tax rate and simplifying payroll administration while modestly increasing employee take-home pay. The guidance also confirms a $750 monthly cap on the vendor timely filing discount, a change that will affect manufacturers with high-volume sales tax filings. Updated school district income tax rates will require payroll adjustments, and newly effective capital gains deductions for business and venture sales could influence long-term investment and succession planning. Manufacturers should review systems now to ensure accurate implementation and identify opportunities to improve cash flow. 1/14/2026

A recent change by the U.S. Postal Service (USPS) could create new risks for manufacturers that rely on mailed tax filings, payments or regulatory documents. Under a USPS rule that took effect Dec. 24, 2025, most machine-applied postmarks now reflect the date mail is processed at a postal facility, not when it is dropped off. As a result, documents mailed before a deadline could receive a later postmark and be considered late. Manufacturers with time-sensitive tax, payroll or compliance filings should review mailing practices, consider requesting manual postmarks, using certified mail or shifting to electronic filing where available. 1/7/2026

Ohio manufacturers and other employers could see significant property tax relief under a package of reforms approved this year by state lawmakers, Ohio House Speaker Matt Huffman, R-Lima, wrote in a guest column published in The Columbus Dispatch. The legislation is designed to slow rapid tax growth by capping annual increases at the rate of inflation and allowing local governments to roll back previously approved levies. Huffman said the changes are expected to save Ohio taxpayers more than $2 billion over the next three years. For manufacturers, the reforms could bring greater predictability for long-term investments in facilities, equipment and workforce expansion. Huffman also pointed to Ohio’s complex network of local taxing authorities as a driver of rising and unpredictable tax burdens, arguing the measures add discipline and accountability while maintaining funding for schools and local services. The legislation now awaits action by Gov. Mike DeWine. 12/15/2025

The U.S. House has unanimously approved the Made in America Manufacturing Finance Act, which would raise the Small Business Administration’s (SBA) loan cap for manufacturers operating entirely in the United States from $5 million to $10 million.

The measure, aimed at expanding access to capital for machinery purchases, facility upgrades and production scaling, now heads to the Senate. It aligns with the SBA’s broader push to bolster domestic manufacturing through reduced fees, onshoring support and industry-specific financing programs.

Lawmakers also advanced several related small-business bills, including proposals to boost investment in manufacturing, strengthen rural support and improve SBA cybersecurity and oversight. 12/11/2025

Ohio leaders are exploring a proposal to pay cities, villages and townships that voluntarily merge, aiming to streamline local government, reduce overhead and modernize long-standing taxing boundaries. The Ohio Manufacturers’ Association (OMA) supports the concept of consolidating taxing districts, noting that fewer overlapping jurisdictions can improve efficiency and create a more predictable environment for manufacturers.

The plan also includes a cash-payment mandate tied to mergers. Manufacturers that operate retail locations should pay close attention, since the structure of these payments could influence local tax administration and compliance requirements.

If your company could be affected or you want to engage on this issue, contact James Lee, OMA managing director of public policy services, to share your interest and perspective. 12/1/2025

Ohio lawmakers approved a package of bills aimed at easing rising property taxes by expanding homeowner credits and capping future tax increases. The legislation boosts the rollback for owner-occupied homes, phases out the nonbusiness credit that also benefits rental properties, and ties major drivers of tax growth, such as inside millage and school district levies at the 20-mill floor, to inflation.

Lawmakers also granted county budget commissions limited authority to reduce excess levies and broadened the calculation of the 20-mill floor to slow revenue growth and temper tax spikes. Altogether, the changes are projected to deliver more than $2 billion in homeowner relief while shifting some costs to the state and limiting local revenue growth. Lawmakers say the relief could also reduce pressure for a 2026 ballot initiative that would eliminate income taxes and leave schools and local governments without funding. 11/20/2025

Under growing public pressure, the Ohio House this fall approved five property tax reform bills, including House Bills 186 and 335, that together could save taxpayers more than $2.4 billion. The package targets flaws in the decades-old House Bill 920, which was meant to limit local revenue growth but has failed to stop steep valuation spikes.

The Ohio Senate is now weighing the measures, with President Rob McColley, R-Napoleon, saying he expects passage “before we’re done this month.” One proposal would give county auditors greater control over triennial updates, while another seeks a constitutional amendment to move toward land value taxation.

The Ohio Manufacturers’ Association continues to monitor the reforms and assess their potential impact on manufacturers and local tax policy. 10/13/2025

Ohio lawmakers advanced two property tax measures that would deliver $2.4 billion in relief over three years by capping annual increases at inflation. House Speaker Matt Huffman, R-Lima, called the package “significant,” projecting a 10% overall reduction for property owners.

Citizens for Property Tax Reform, which is collecting signatures for a 2026 constitutional amendment to eliminate property taxes, dismissed the bills as a “stopgap” that ignores valuation spikes of 50% or more in some counties.

In the Senate, a proposal to cover up to 50% of taxes for seniors 65 and older faces steep fiscal hurdles. Leaders warn abolishing property taxes would gut $23.9 billion in annual local revenue.

The Ohio Manufacturers’ Association is tracking all proposals and will update members as legislation and ballot initiatives progress. 11/4/25

CliftonLarsonAllen outlines five steps manufacturers can take to make audits more efficient — and more valuable. The firm advises keeping financials organized, reconciling accounts early, and tightening internal controls around inventory and asset management. Using Enterprise Resource Planning or cloud-based tools can simplify document sharing and reduce audit stress. Just as importantly, proactive communication with auditors can reveal opportunities for process and performance improvements. With the right preparation, manufacturers can transform audits from a compliance obligation into a strategic advantage. Read more here. 10/29/25

The Ohio House on Wednesday overwhelmingly approved two property tax reform bills aimed at curbing rising property taxes and providing relief to homeowners. House Bill 186 caps “outside millage” taxes, which require voter approval, at the rate of inflation, while House Bill 335 applies similar limits to “inside millage” taxes that do not need voter consent. Together, the measures are projected to save Ohio taxpayers more than $2.4 billion — about 10% of the state’s total property tax revenue.

To address concerns from school districts, the legislation establishes a $360 million fund to offset potential revenue losses and ensure schools remain adequately supported. The reforms also give counties the power to reduce inside millage and replace it with local sales or income taxes, with safeguards to prevent reverting to higher property tax rates. 10/23/25

CliftonLarsonAllen recently shared exciting news for manufacturers: the newly enacted One Big Beautiful Bill Act introduces a transformative tax incentive — the Qualified Production Property deduction — offering significant opportunities for immediate savings on manufacturing-related property investments. This provision allows manufacturers to fully deduct the cost of eligible real property — such as structural components, HVAC systems and lighting — used directly in production facilities, bypassing decades-long depreciation schedules. To take advantage, projects must start after Jan. 19, 2025, and be operational before Jan. 1, 2031.

Only property directly supporting manufacturing — such as production-area equipment and systems — qualifies, while offices and warehouses are excluded. Conducting a cost-segregation study can help identify eligible components and maximize your available tax deductions.

Don’t miss out on this opportunity to boost your bottom line. Consult your tax advisor today to plan new construction or facility upgrades and unlock the full potential of this tax break. 10/20/2025

The House Small Business Committee heard proponent testimony this week on House Bill 332, introduced by State Rep. Ty Mathews, R–Findlay.

The bill would expand access to low-interest loans for Ohio’s small defense manufacturers and agricultural producers by leveraging existing state treasury resources through linked deposit programs. The proposal aims to help businesses lower borrowing costs and invest in growth without directly utilizing taxpayer dollars in the state’s general revenue fund.

Ohio Manufacturers’ Association members interested in supporting or learning more about House Bill 332 can contact James Lee for more details. 10/16/2025

As the threat of a statewide constitutional amendment to abolish property tax looms large, state lawmakers in Columbus this week took steps to advance two key property tax reform bills — House Bill 129 and House Bill 309. Both bills are sponsored by State Representative David Thomas (R-Ashtabula) and would curb future tax spikes and enhance oversight of local levies.

While both bills received bipartisan support, some lawmakers expressed concern about the pace of reform and potential impacts on voter-approved taxation. The legislation now moves to the Senate for further consideration. Representative Thomas met with members of the OMA tax committee earlier in the year. OMA staff is monitoring the issue. 10/9/2025

A new NAM survey shows manufacturers’ optimism rising to 65% in Q3 2025, up 10 points from the previous quarter, following the passage of the landmark One Big Beautiful Bill Act. Still, confidence remains below the historical average, with concerns intensifying over trade uncertainty (78%), rising raw material costs (68%) and increasing health care expenses (65%).

NAM President and CEO Jay Timmons noted that sustained certainty in trade, permitting, regulation and workforce policy is needed to unlock the full potential of the tax reforms. Manufacturers project 2.5% growth in production and 1% in capital investment over the next year, while costs are expected to rise more slowly than in Q2. 10/2/2025

Property tax reforms remain at the top of the agenda for state lawmakers as they return to the Statehouse following their summer recess. A recent provision was added to House Bill 186 aimed at giving targeted relief to homeowners facing rising property values, hoping to get ahead of a looming 2026 ballot initiative that could eliminate property taxes entirely. Property taxes generate roughly $20 billion for schools and essential local government services, making any changes highly consequential.

The bill focuses on reforming the 20-mill floor for school funding, mainly affecting rural districts, and could reduce statewide taxes by hundreds of millions in 2026. Concerns remain from manufacturers and the business community that a broad loss of property tax revenue could make them a top target for replacement funding, a move that would be disastrous for Ohio’s tax competitiveness. 9/25/2025

Last week, the OMA Tax Committee delved into an emerging ballot issue to eliminate property taxes in Ohio via a constitutional amendment. If the popular measure is approved by voters, lawmakers at the Statehouse would need to act quickly to fill a funding hole of more than $20 billion for schools, libraries, transit agencies and other services funded predominantly property tax revenue.

In response to the proposed amendment, the Cleveland Plain Dealer did a deep dive into the largest tax expenditures on the books. The largest: a tax exemption for property used in manufacturing, worth nearly $5 billion over the next two years, according to the article.

The Ohio Capital Journal this week reported on the status of the ballot campaign that could be headed to voters in 2026. In the story, Ohio Speaker of the House Matt Huffman mentions overwhelming voter support for the possible ballot measure.

Manufacturers have a strong vested interest in the ballot issue. The matter will be discussed at the upcoming meeting of the OMA Government Affairs Committee on Tuesday, Sept. 30. 9/16/2025

The OMA’s Tax Committee met this week to discuss the potential impacts of a citizen-led ballot initiative that would eliminate property taxes in Ohio. The committee heard from Citizens for Property Tax Reform, the group pushing for the ballot initiative, while a top public finance expert separately provided an analysis of the significant fiscal impact of a $21 billion revenue loss, which would primarily impact schools and local governments.

Committee discussion indicated that a total elimination of property taxes would likely force legislators to inflict new tax burdens on manufacturers. 9/10/2025

In the heat of the state’s property tax reform debate, Gov. Mike DeWine’s property tax working group convened for its meeting to consider new tax relief measures that include income-based “circuit breaker” credits, changes to the homestead exemption, and possible consolidation of local governments and school districts. Lawmakers have expressed concerns over the high cost of these proposals and limited willingness to replace lost revenue.

The debate comes at a critical time as state lawmakers and the governor’s administration attempt to craft policies that provide adequate tax relief that will ward off a potential ballot initiative to abolish property taxes entirely, leaving schools local governments without funding.

The Ohio Manufacturers’ Association is closely monitoring the debate to ensure that any reforms do not shift the tax burden onto manufacturers. 9/3/2025