Governor DeWine, OBM Warn of Property Tax Elimination Impacts at 2026 OTA Conference
Governor DeWine, OBM Warn of Property Tax Elimination Impacts at 2026 OTA Conference
Governor DeWine spoke to township officials from across the state at the OTA’s 2026 Winter Conference General Session. During his remarks, the Governor addressed the proposed constitutional ballot issue that would eliminate property taxes entirely.
Governor DeWine stated: “If that were to happen, it would create an immediate and severe crisis. Many local services that depend on property tax funding would disappear almost overnight. Property taxes are relatively predictable unlike income and sales taxes which fluctuate more with economic conditions. These fluctuations make budgeting for public services more uncertain.”
He went on, “As discussions continue in the media and in communities about proposals like this, it’s important to consider the real-world consequences. No one likes paying taxes, but some taxes are necessary to maintain essential services. Eliminating property taxes would also mean a loss of local control. Today, voters can approve or reject levies in their communities. If funding shifted entirely to the state level, that local authority would largely disappear.”
Ohio benefits from stable taxation and a competitive income tax rate. Governor DeWine shared that Ohio’s state income tax rate is now 2.75% — the second lowest among states in the U.S. that have an income tax. He noted that to replace lost property tax revenue through income taxes, the state rate would need to increase somewhere between 11 and 15 percent. Alternatively, if the replacement came through sales tax, the current 5.3% state sales tax rate would have to rise to roughly 15-18%.
Governor DeWine also cited several statistics that were included in a memo released last week by the Director of the Office of Budget & Management (OBM). The memo lays out the fiscal challenges the state will face should Ohioans vote to abolish property taxes. Members can read OBM's memo here.
At the 2026 OTA Winter Conference, the OTA shared a flyer that townships may use to educate their residents and the general public about townships and property taxes. We are also in the process of creating a toolkit to help you explain what townships do, why townships matter, and how property taxes work. This toolkit will include, among other things, talking points, web/social media posts, and sample news stories. Watch for more information on the OTA website ("Funding" tab -> "Property Taxes" or "Property Taxes" tab in our Resource Center) and through our regular communication channels.
Governor DeWine's speech and the Property Tax Panel featuring Bill Seitz, David Thomas, and Chris Galloway at the 2026 OTA Conference General Session will soon be available for free to all OTA members in our Resource Center. Visit ohiotownships.org/property-taxes for upcoming resources and news regarding this issue.