Governor DeWine signs Ohio budget with property tax reforms and flat income tax implementation

The Mason City Council meeting held on July 14, 2025, focused on several key topics, including updates on state budget changes and local initiatives.

The meeting began with a report on recent developments from the state level. On June 30, Governor Mike DeWine signed House Bill 96, which outlines a $90.5 billion operating budget for fiscal years 2026 and 2027, including seven line item vetoes. Notably, the Ohio House is set to reconvene on July 21 to vote on overrides concerning property tax vetoes. These vetoes include measures aimed at granting county budget commissions greater authority to adjust property tax millage and the elimination of replacement property tax levies.

Governor DeWine also announced the formation of a property tax reform working group tasked with exploring ways to provide meaningful property tax relief while ensuring adequate funding for essential services such as local schools, fire departments, police, EMS, libraries, and developmental disabilities. The group is expected to deliver a report with proposals by September 30.

Additionally, the budget introduces a flat income tax rate of 2.75% for residents earning at least $26,051, which is projected to result in a $1 billion loss in state revenue. While local government funding has seen a slight increase from 1.7% to 1.75%, concerns were raised about potential reductions in local distributions due to the new tax structure.

The council also discussed significant investments in public safety initiatives and infrastructure improvements, emphasizing the importance of these funds for community services.

For those interested in the full details of the budget, the complete 3,156-page bill is available for review on the Ohio government website.

The meeting concluded with a focus on local matters, setting the stage for future discussions on community development and resource allocation.