Operating Budget Signed into Law: What Made the Final Cut?
Governor DeWine has officially signed the state’s two-year operating budget (House Bill 96) into law, finalizing policy and funding decisions that will shape Ohio through 2027. The Governor issued 67 vetoes, the largest number of vetoes he has issued since becoming governor in 2019. Lawmakers can override Governor DeWine’s vetoes with a vote of three-fifths of legislators in each chamber.
The final version of House Bill 96 appropriates approximately $200 billion in state and federal spending over the next two years and includes a number of high-profile proposals, including a significant income tax reduction and a new funding mechanism to assist in building a new stadium for the Cleveland Browns. There were also numerous changes in the areas of housing policy and economic development.
One priority for Ohio REALTORS® entering the budget process was to implement meaningful reforms to Ohio’s property tax system. Over the past few years, property taxes have skyrocketed, making the purchasing of homes unaffordable and forcing many Ohioans out of their houses. To address this, the legislature proposed reforms that would prevent unrestrained growth in property taxes without voter approval as property values increase and provide more oversight of school districts’ budgets. Unfortunately, Governor DeWine vetoed these reforms and instead called for a working group of legislators, agency officials, school organizations, and property tax experts to review possible solutions.
Throughout the budget process, Ohio REALTORS® worked to ensure that key provisions affecting housing, property taxes, and development were not only protected, but advanced. The final version includes several REALTOR®-backed priorities that will strengthen the real estate industry and support homeownership.
Below are key changes that were included in the final signed version of the state operating budget:
Housing and Development
- Homebuyer Plus Program: The Ohio Homebuyer Plus Program was created two years ago to assist Ohioans in saving for a new home. This program has been extremely successful, with approximately 20,000 accounts opened since the program became operational. The budget makes technical adjustments to the program that are supported by both the Ohio Treasurer and the Department of Taxation.
- Ohio Housing Trust Fund: Removes a proposed change to the Ohio Housing Trust Fund that would have shifted control away from the state level. House Bill 96 preserves centralized oversight and ensures that resources are directed where they are needed most.
- Clarifies Written Representation Agreement Language: Clarifies legislation passed last session (House Bill 466) dealing with written representation agreements that REALTORS® must enter with their clients. These changes were developed in collaboration with the Ohio Division of Real Estate and Professional Licensing.
- Planned-Unit Development and Township Referendum: Raises the threshold for referendum petitions on local zoning amendments to 35% of electors, a shift that will make zoning changes more difficult to challenge and will remove a barrier to new housing construction projects.
- Board of Building Standards (BBS): The bill enables the BBS to develop rules that would allow local building departments to use third-party plan examiners and building inspectors – with guardrails that the BBS would set.
- Civil Rights Commission: Allows housing discrimination cases to be pursued as a civil suit sooner.
- Brownfield Remediation and Demolition: Provides $200 million for the Brownfield Remediation Fund and $20 million per fiscal year for the Building Demolition and Site Revitalization Fund. Ohio REALTORS® supports this investment to help communities clean up contaminated sites, remove blighted structures, and unlock potential development across the state.
- Historic Building Rehabilitation Tax Credit: The budget increases the Historic Building Rehabilitation Tax Credit from $60 million to $75 million.
- Transformational Mixed Use Development and Opportunity Zone Tax Credits: Increases the total available TMUD credit from $100 million to $125 million per year. It also increases Opportunity Zone tax credit funding from $ 25 million to $ 50 million annually.
- $25 Million New Residential Economic Development District Grants: Creates a new grant program to assist local governments in addressing the housing shortage. To qualify, local governments near major economic development sites must adopt pro-housing policies to support workforce housing projects.
- $100 Million Residential Development Revolving Loan Fund: Offers loans for infrastructure to support single-family housing in rural counties (population under 75,000). Homes built using these funds would be exempt from property taxes, with payments instead used to repay the loan.
- Expands the Welcome Home Ohio (WHO) Program: Continues state investment in WHO, which is designed to aid non-profit organizations in purchasing, building, and rehabbing single-family, owner-occupied homes. House Bill 96 also expands eligibility requirements to increase the number of Ohioans who can benefit from this important program.
- Lead Abatement Efforts: Increases to $40,000 (from $10,000) the maximum amount of the tax credit that can be issued by the Department of Health for lead abatement. Caps total tax credits awarded each year at $3 million. House Bill 96 reduces funding for other lead abatement programs within the Department of Health, including the Lead-Safe Home Fund Program.
- Closing Property Tax Challenge Loopholes: House Bill 96 modifies the requirements governing when political subdivisions can file property tax complaints and counter-complaints. This change builds upon legislation passed in 2022 (House Bill 126) that was aimed to protect property owners from the aggressive tactics used by school districts to challenge property valuations set by county auditors.
Income Taxes
- Income Tax Reduction: Reduces Ohio’s income tax from 3.5% to a flat 2.75%. With the budget now signed into law, Ohio REALTORS® remains focused on the implementation of these policies and making sure that they deliver real results for property owners, homebuyers, and communities statewide. We will continue to work closely with state leaders and local partners to advocate for strong, sustainable housing solutions that move Ohio forward.
Learn more about the operating budget below:
Governor DeWine’s Veto Message
Budget Update: Senate Approves Budget Bill with Major Impacts on Housing and Property Taxes
State Operating Budget Moves to Senate with Housing Provisions in Play
Ohio's Budget Breakdown: Key Housing Provisions to Watch
