House Bill 96 (State Operating Budget)
Date postedJune 20, 2025
Bill Status This bill has been enacted.
Status
This bill was signed by the Governor on June 30, 2025, and went into effect immediately.
The OTA is reviewing the provisions that survived the Governor's vetoes and will provide guidance on township operational impact moving forward.
Bill Resources
View the bill, testimony, committee activity, and other information through the links below.
Committee Hearings
House Agriculture Committee — Feb. 27, 2025
Watch the OTA’s testimony from the February 27, 2025, House Agriculture Committee hearing below. If the video does not load, view the hearing on the Ohio Channel .
House Finance Committee — March 12, 2025
Watch the OTA’s testimony from the March 12, 2025, House Finance Committee hearing below. If the video does not load, view the hearing on the Ohio Channel .
Senate Finance Committee — May 30, 2025
Watch the OTA’s testimony from the May 30, 2025, Senate Finance Committee hearing below. If the video does not load, view the hearing on the Ohio Channel .
Included Provisions
The following provisions were included in the final version of the bill. These were sent to the Governor for line-item veto.
Township-Related Provisions
Local Government Fund Support
- Increases the Local Government Fund by 0.05%, from 1.70% to 1.75%.
Fire Department Grants Support
- Increases the grant program by $8 million for fire departments in counties with populations of 70,000 or less.
Pay Increases
- Increases elected official pay from 1.75% to 5% through 2029.
- Removes cost-of-living adjustments after 2030.
- Please note that elected officials may not receive a mid-term pay increase.
County Budget Commission Oppose
- Keeps the county prosecutor on the county budget commission, but if the county prosecutor recuses themselves, a county commissioner is the alternative.
New Community Authority Support
- Allows a township that adopted limited home rule before January 1, 1995, within a county with a population of more than 400,000, to adopt a new community authority district.
Eminent Domain
- Allows for eminent domain use, but prohibits use for parkways or recreational trails if the property sought was subject to a previous taking that 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 valuation, the local government must provide a conveyance fee statement declaring the value of the property conveyed and 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 a legislative authority to extend a Community Reinvestment Area for a site with a megaproject or future megaproject for up to 30 years.
Video Public Records
- Expands the definition of victim to a person who suffered a loss and could seek a remedy through a tort action.
- Permits a fee to be waived only after 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.
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.
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 Support
- Allocates 36% of the 10% tax in perpetuity to the Host Community Cannabis Fund for townships that have dispensaries in their community.
- Credits all other revenue to the General Revenue Fund.
- Allows a township to limit or prohibit adult-use marijuana dispensaries within its jurisdiction.
- Does not provide a payment mechanism for those currently with adult-use dispensaries.
OPWC Small Villages & Townships Support
- Increases the OPWC Small Government Program percentage from 10% to 12%.
- Requires the first $10 million in FY 2026 to be used for projects for townships with populations of less than 5,000.
Replacement Levies Oppose
- Eliminates replacement levies after January 1, 2026.
Property Tax Abatement
- Permits a township to apply within one year for an abatement of delinquent property taxes owed by the township.
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 to reduce millage on any voter-approved tax levy.
- County budget commissions 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 county budget commission to offer testimony describing how inside millage is allocated to 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.
- Increases the referendum threshold from 15% to 35% for any planned-use development projects for limited home rule townships and municipalities.
Township Referendum Megaprojects
- Exempts township zoning amendments related to megaprojects from referendum.
Referendum Threshold Increase Oppose
- Increases the zoning referendum threshold for municipalities and limited home rule townships from 10% to 35% of the total vote cast for all candidates for governor.
Auditor of State
- Requires township fiscal officers to retain documentation of required completed continuing education courses.
- Requires the Auditor of State 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.
Limitations on Property Tax Complaints
- Limits subdivisions' authority to file a property tax challenge only if the subdivision filed a conveyance statement within two years or if a sale was recorded with the county recorder.
Resort Tax
- Allows municipalities and townships to increase resort area taxes to 2% or 2.5% if approved by electors.
County Lodging Tax
- Allows the board of county commissioners to increase the lodging tax by no more than 1% so long as the total rate does not exceed 5%.
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 avoid being subject to dissolution.
Fiscal Emergency Receivership
- Allows a board of township trustees to request the Attorney General to create a receivership if the township is in fiscal emergency for 10 consecutive years or twice in a period of 10 years.
Next Gen 911 Support
- Raises the Next Gen 911 access fee from 40 cents to 60 cents.
Opportunity Zone Investment Tax Credit
- Provides $50 million per fiscal year for the grant program.
Residential Economic Development Districts
- Provides grants for subdivisions within 20 miles of major economic development projects to provide housing, utilities, and tax abatements.