Tax and Finance

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

From tax incentives to tariffs, the “One Big Beautiful Bill Act” (OBBBA) creates sweeping reforms that could have a significant impact on how manufacturers operate, hire, and do business.

OMA Connections Partner Fisher Phillips has created a snapshot of all the changes to the OBBBA and its projected impact on manufacturers. 8/20/2025

Soaring property tax bills are fueling a push among some Ohio lawmakers to abolish property taxes altogether.

Average home values in Cuyahoga County rose 32% after a 2024 reappraisal, leaving many residents, especially seniors on fixed incomes, struggling to pay.

Republican State Reps. Jennifer Gross and Tex Fischer, along with Lake County Commissioner John Plecnik, have signed a petition to place a constitutional amendment on the 2026 ballot to end all property tax collections, which generate more than $20 billion annually.

Learn more about the effort to abolish Ohio’s property taxes at the OMA’s upcoming Tax & Finance Committee on Sep. 10. 8/12/2025

Ohio Senate President Rob McColley this week signaled that the chamber is unlikely to reconvene during the summer break to address the reforms Gov. Mike DeWine struck from the state budget in June. Those vetoed provisions included limits on local levies, school district savings, and changes to how excess tax revenue is handled.

House Republicans returned in July and overrode one veto—banning certain levies—but lacked the votes to advance others. Overrides require a 60% majority.

Meanwhile, DeWine’s property tax working group continues behind closed doors, with recommendations expected by Sept. 30.

Although GOP leaders insist they have the votes in the Senate, the urgency has waned, partly because the changes wouldn’t reduce current tax bills. Lawmakers are expected to revisit the issue when they return this fall, with broader reforms potentially on the horizon. 8/6/2025

A legislative working group assembled by Gov. Mike DeWine met with Ohio property tax reform advocates this week as pressure builds over potential veto overrides and a proposed constitutional amendment to eliminate property taxes.

During the meeting, members heard from leaders of a citizen-led ballot campaign seeking to phase out property taxes and replace them with an alternative funding system. While advocates argue the change would ease the financial burden on homeowners, several members of the working group expressed concern that eliminating property taxes could jeopardize critical funding for schools and local governments.

The group plans to issue recommendations later this year that could shape whether lawmakers pursue legislative alternatives to the ballot measure or advance targeted reforms to Ohio’s appraisal and taxation processes. The Ohio House has already overridden one of DeWine’s vetoes, with the Senate vowing to concur at a later date. 7/25/2025

Earlier this month, President Donald Trump signed “The One Big Beautiful Bill Act” (OBBBA) into law, enacting sweeping reforms and changes across the federal government.

Chief among these were wide-ranging tax changes that could significantly affect key business issues for manufacturers, including changes to cost of capital, R&D, and global supply chain implications.

OMA Connections Partner RSM has created a breakdown of both the enhanced tax benefits and business challenges that manufacturers face under the OBBBA. 7/24/2025

A grassroots coalition in Ohio to abolish property taxes is gaining momentum in the wake of recent legislative attempts to address rising property taxes across the state.

The Citizens for Property Tax Reform group must collect about 443,000 valid signatures across at least 44 counties by early July to qualify a constitutional amendment on the November 2025 ballot.

The group dismissed recent legislative attempts to curb property taxes by the legislature, calling them insufficient. 7/22/2025

The Producer Price Index for final demand remained unchanged in June, easing slightly to a 2.3% annual increase. While prices for final demand goods saw a 0.3% monthly rise—the largest since February—which was largely offset by a decline in services prices.

Notably for manufacturers, prices for private capital equipment jumped 4.2% over the year, indicating rising costs for new machinery and tools. Economists are closely monitoring these trends, particularly the core inflation metrics, as they influence the Federal Reserve’s decisions on interest rates. 7/9/2025

In response to rising property tax bills across the state, Republican Reps. Beth Lear (R-Galena) and Tex Fischer (R-Boardman) are preparing to introduce a constitutional amendment to cap annual property taxes at 1.25% of a home’s appraised value—and 1% for seniors.

The proposal comes as many counties brace for 2026 reappraisals and growing taxpayer frustration. Fischer said the measure would provide substantial relief to homeowners, but critics, including several Democrats, argue it could severely undermine funding for schools and public services. Cuyahoga County alone could see a $1.7 billion drop in collections if average tax rates were reduced to the proposed cap.

Gov. Mike DeWine recently vetoed several property tax relief measures, favoring another working group instead. Fischer warned that continued delays could push voters toward a separate citizen-led amendment to eliminate property taxes altogether, possibly appearing on the November 2026 ballot. 7/9/2025

The Ohio General Assembly has finalized its two-year, $60 billion biennial budget, advancing it to Gov. Mike DeWine after bipartisan conference agreement and separate votes in both chambers.

Key components of the budget include:

• Flat income tax: Beginning in 2026, the current two-bracket system will shift to a flat 2.75% rate for all Ohioans earning above $26,050, reducing revenue by over $1 billion
• School funding adjustments: A compromise sets a 40% cap on school districts’ allowable carryover of property tax collections, after initial House and Senate proposals of 30% and 50%, respectively
• Browns stadium financing: The budget establishes a sports facilities fund using unclaimed state funds, diverting $1.7 billion total, with $600 million earmarked for the Browns’ domed stadium in Brook Park
• An elimination of the data center sales tax exemption on certain purchases currently offered by the Ohio Department of Development. This elimination would create uncertainty around many projects in Ohio that provide both direct and indirect jobs for Ohioans, as well as tax revenue

The completed budget will now be sent to Gov. DeWine, who may then sign it—potentially with line‑item vetoes—or reject specific sections by June 30. 6/25/2025

The final version of the state budget bill, House Bill 96, contains revisions to the manufacturers’ sales and use tax exemptions. The OMA supports the continuity of this important exemption intended to prevent business inputs from tax liability.

HB 96 proposes to begin imposing sales tax on newspaper advertisements and related print publications. Those exemptions began at the same time as the Ohio sales tax, many decades ago. Unless Governor DeWine exercises a line-item veto on the provision, Ohio will be one of the few states with such taxes. Some question if the move to tax newspapers is retribution for criticism by the press. 6/25/2025

The OMA’s Tax & Finance Committee this week met the day after the legislature finalized the state operating budget, diving deep into the key wins and provisions that affect manufacturers most.

State Rep. Dave Thomas (R-Jefferson) joined the committee to discuss the budget process, explain key provisions in the bill, and efforts to reform property taxes in Ohio. 6/25/2025

State lawmakers from both chambers this week kicked off the first of two weeks of budget negotiations, with major disputes over K-12 school funding and financing for a new Cleveland Browns stadium.

Gov. Mike DeWine and Senate Republicans want to stick with the current funding model for schools, while House Republicans propose a temporary formula that Democrats argue shortchanges some districts. Despite the disagreements, all sides expect record-high spending for schools.

Meanwhile, how to pay for a new Browns stadium has split negotiators: DeWine supports using sports-betting tax revenue, the House wants long-term bonds, and the Senate suggests tapping $600 million from unclaimed funds. Lawmakers face a June 25 deadline to reach a compromise before the governor must sign the final budget by July 1.

The state budget will be covered extensively at the OMA Tax & Finance committee next week. 6/17/2025

The Ohio House and Senate have each passed their own versions of the two-year state budget, now heading to a conference committee to reconcile hundreds of differences. Key disagreements include:

• Income tax: The Senate backs a flat 2.75% rate for all earners above $26,050 by 2026, which would phase out the top bracket and cut state revenue by over $1 billion. The House retains the current progressive structure without major changes
• Public library funding: The House packages library funding into the main budget; the Senate supports Gov. DeWine’s plan to link it to the general revenue fund percentage
• Cleveland Browns stadium: The House proposes issuing $600 million in bonds, while the Senate would tap unclaimed state funds for a performance grant instead
• School funding: The Senate followed Governor Mike DeWine, allocating state dollars to the Fair School Funding Plan formula, while the House version of the budget only ensured every district received more than the previous year. Cleveland.com has compiled a table to show current funding levels and the plans by DeWine, the House, and the Senate for every district in Ohio

Next up: a closed-door conference committee will negotiate a unified budget, which must pass both chambers and then receive the governor’s approval—subject to potential line-item vetoes—before the June 30 fiscal deadline. 6/12/2025

The Ohio Senate this week unveiled their version of the state budget that includes significant tax reforms and funding allocations. A key feature is the introduction of a flat income tax rate of 2.75% for all Ohioans earning over $26,050 annually, replacing the current two-bracket system. This change is expected to reduce state tax revenue by over $1 billion over two years.

The budget also allocates $600 million for the construction of a new domed stadium for the Cleveland Browns in Brook Park. Unlike the House’s debt and bond funding approach, the Senate proposes using a performance grant program funded by unclaimed funds managed by the Department of Commerce .

In education, the Senate’s budget increases public school funding by approximately $100 million compared to the House’s proposal. It also modifies the cap on school district cash reserves, raising it from 30% to 50% and allowing for additional funds earmarked for construction projects, provided they are used within three years.

The budget also includes investments in workforce development to strengthen Ohio’s talent pipeline. The Industry Sector Partnership (ISP) Grant has retained its proposed levels from the executive budget at $10 million to support business-education collaborations.

The TechCred program has also remained at its proposed level of $50.4 million, which will continue to help employers offset upskilling costs. Tech Prep, which ensures high-quality career-technical education programs for students, has been suggested to receive up to $4 million each fiscal year for competitive grants.

Senate leaders aim to pass the budget by June 12 to allow time for negotiations with the House ahead of the June 30 deadline. 6/4/2025

A proposed amendment to Ohio’s Constitution seeks to repeal local property taxes in Ohio. If approved, the majority funding source of public schools would be displaced, forcing taxing alternatives. The Dayton Daily News profiles the pros and detractors of the proposal. Interested manufacturers will want to join the conversation at upcoming OMA public policy committee meetings. 5/28/2025

The Ohio Manufacturers’ Association this week voiced strong support for House Concurrent Resolution 8, which urges Congress to make the 2017 Tax Cuts and Jobs Act (TCJA) permanent.

In testimony before the House Government Oversight Committee, the OMA highlighted how the TCJA spurred record investment, job creation, and wage growth across Ohio’s manufacturing sector. 5/19/2025

This week, House Bill 288, also known as the “Prompt Pay” bill, was introduced in the Ohio House.

The bill, which has been introduced and opposed by the OMA in the past, mandates payment terms in construction contracts and eliminates the owner’s right to negotiate by requiring payment within 30 days (or face an exorbitant 18% interest penalty). 5/20/2025

Ohio’s tax revenues came in slightly over forecasts in April, according to data from the Office of Budget and Management, Hannah News Service reports.

While income tax projections missed their mark by over eight percent, about $1.1 billion, versus expectations of $1.2 billion, sales and CAT tax collections made up for the miss. Sales tax overshot its mark, collecting 6.5 percent over estimates, with CAT taxes nearly doubling expectations.

Compared to FY24, tax collections are up $787.7 million, or 3.5 percent. 5/7/2025