House Bill 96 (State Operating Budget)

 The OTA is an Interested Party for this bill.

Status

The Ohio Senate Finance Committee adopted an omnibus amendment to their version of HB 96. The Senate is prepared to vote on its version of the bill on June 11, 2025.   

CALL TO ACTION
Please contact your state senator regarding your opposition to the provisions marked 'opposed' below. The Senate will vote on the budget on June 11. To find your senator, click here.

The provisions below were added by the Senate omnibus amendment:

Fire Department Grants - Support

• • Increased the grant program by $8 million for fire departments in counties with populations of 70,000 or less

Pay Increases

• • Removed a provision that provided a yearly pay increase for township officials of 5% until 2029. Beginning in 2030, pay will be increased by CPI, capped at 3%

New Community Authority - Support

• • Allows a township that has adopted limited home rule prior to January 1, 1995, within a county with a population of over 400,000, to adopt a new community authority district

Referendum Threshold Increase - Oppose

• • Increases the zoning referendum threshold for municipalities and limited home rule townships from 35% of the total vote cast for all candidates for governor

Eminent Domain

• • Allows for eminent domain use, but with a prohibition for parkways or recreational trails if the property sought was subject to a previous taking but was dismissed on or after January 1, 2024, and no right of appeal remains from the original action

Brownfield Remediation - Support

• • Increases the brownfield remediation fund by $25 million in each fiscal year

Opportunity Zone

• • Limits the total amount of the Ohio Opportunity Zone Investment Income Tax Credit that can be issued for a single project to $5 million

Property Tax Appeals

• • If seeking an increase in the valuation of the property, the local government must provide a conveyance fee statement that declares the value of the property conveyed and that was filed during the two years preceding the tax lien date for the tax year in which the complaint is to be filed

Megaproject Community Reinvestment Area

• • Allows for a legislative authority to extend a Community Reinvestment Area (CRA) for a site with a megaproject or a future megaproject for up to 30 years

Video Public Records

• • Expands the definition of victim to a person who suffered loss and could seek a remedy through a tort action
  • Permits a fee to be waived only after the receipt of an affidavit by the victim or the victim's legal counsel
  • Specifies that legal counsel means an attorney who provides a retention agreement or letter of representation

Agricultural Land Tiles / Portable Grain Bins

• • Removed a provision that repealed the sales and use tax exemption for agricultural land tile and portable grain bins

Residential Economic Development District Program

• • The Residential Economic Development District Program is an incentive program for residential development near major economic development
  • Allocates $10 million in FY 2026 and $15 million in FY 2027 to support the Residential Economic Development District Program

Elected Official Roster

• • Eliminates the requirement of the Secretary of State to compile Ohio election statistics and the official roster of federal, state, county, township, and municipal officers biennially

The provisions below were unchanged in the omnibus amendment and remain in the Senate version:

Local Liquor Option - OTA Priority

• • Requires a local option petitioner for alcohol sales to pay the entire ballot cost of an election when there is no candidate or issue on the ballot

Battery-Charged Fences

• • Prohibits a county, township, or municipality from adopting or enforcing a regulation that prohibits the installation of a battery-charged fence
  • Retains a permit or fee for the installation or use of such fence

County Budget Commission - Support

• • Reverts back to current law, keeping the County Prosecutor on the County Budget Commission rather than the Chair of the Board of County Commissioners

State Income Tax

• • Phases down the state income tax to a flat rate of 2.75% over a two-year period
    • Revenue losses of $529 million in FY 2026. GRF would bear 96.6% of the loss, with the remaining 3.4% revenue loss split between the Local Government Fund and the Public Library Fund

Adult Use Marijuana - Oppose

• • Same as the House version
    • Allocates 20% of the 10% tax to the Host Community Cannabis Fund for townships that have dispensaries as of June 30, 2025
    • All other revenue is credited to the General Revenue Fund
    • Sunsets the Host Community Cannabis Fund after five years

OPWC Small Villages & Townships - Support

• • Increases the OPWC Small Government Program percentage from 10% to 12%
  • Requires the first $10 million in FY 26 to be used for projects for townships with populations of less than 5,000

Property Tax Oppose

• • Eliminates replacement levies after January 1, 2026

Burial Permit Fee Increases - OTA Priority

• • Increases the Burial Permit Fee to $10 and allocates $6 of that fee to the Cemetery Grant Program

County Budget Commission Reduce Millage - Oppose

• • Allows a county budget commission (CBC) to reduce millage on any voter-approved tax levy aside from a debt levy
  • CBCs may not reduce a levy that collects less revenue than in the preceding year
  • Requires political subdivisions to disclose all funds in their control
  • Requires the CBC to offer testimony describing how inside millage is allocated to the jurisdictions in the county

Township Referendum - Oppose

• • Increases the zoning referendum threshold from 15% to 35% of the total vote cast for all candidates for governor

Housing Incentive Program

• • Provides $2.5 million per fiscal year for a newly created housing incentive program for townships that adopt pro-housing policies.

 Auditor of State

• • Requires township fiscal officers to retain documentation of required completed continuing education courses
  • Requires the AOS to audit for compliance with the continuing education courses

Public Record Law Changes - Support

• • Codifies case law that personal notes of a public official or public employee are not public record

Local Government Fund - Support

• • Increases the Local Government Fund by 0.05% (from 1.70% to 1.75%)

Resort Tax

• • Allows municipalities and townships to increase resort area taxes to 2% or 2.5% if approved by electors

ODNR Contracts - Support

• • Requires ODNR to enter into a contract with municipalities and townships for reimbursement if ODNR does not provide the following:
    • EMS
    • Garbage and debris removal
    • Snow removal
    • Any other service if ODNR requests a local government to provide it

Cybersecurity Programs

• • Requires all political subdivisions to adopt a cybersecurity plan that protects the subdivision’s data

Village Dissolution

• • Includes providing electric utilities as a condition that must be met by the village to not being subject to dissolution

Fiscal Emergency Receivership

• • A board of township trustees may request the Attorney General to create a receivership if the township is in Fiscal Emergency for a period of 10 consecutive years, or twice in a period of 10 years

Next Gen 911

• • Raises Next Gen 911 Access Fee from 0.40 cents to 0.60 cents

See the links below for more information on the Ohio Legislature's website, such as proponent and opponent testimonies, a summary of the bill, and more. 

House Bill 96

OTA Interested Party Testimony 2/27/2025

OTA Interested Party Testimony 3/12/2025

OTA Interested Party Testimony 5/30/2025

Watch the testimony from the February 27, 2025, House Agriculture Committee hearing below. If the video does not load, click here to view the video on the Ohio Channel.

Watch the testimony from the March 12, 2025, House Finance Committee hearing below. If the video does not load, click here to view the video on the Ohio Channel.

Watch the testimony from the May 30, 2025, House Finance Committee hearing below. If the video does not load, click here to view the video on the Ohio Channel.