A new memo from the Ohio Office of Budget and Management lays out the sweeping fiscal fallout of a proposed constitutional amendment to abolish property taxes in Ohio, warning of billions of dollars in lost revenue for schools and local governments. The analysis raises sharp questions about how the state would replace funding that supports education, infrastructure and essential public services.

The memo cautions that eliminating property taxes would not make costs disappear, but could instead shift the burden to other taxes or destabilize local budgets, creating uncertainty for employers and communities.

“Property taxes pay for the basics that make communities work and businesses grow,” said Jacob Sargent, director of public policy services at the Ohio Manufacturers’ Association. “Scrapping them without a serious, workable replacement plan risks trading one problem for a much bigger one.” 2/9/2026