10-01-2025 9:10pm

House, Senate Override Governor's Veto on Key Property Tax Reform

Beth Callahan Editor

WARREN COUNTY, OH -- State Representative Adam Mathews (R-Lebanon) today announced that the Ohio Senate voted to complete the override of the Governor’s veto of Item #66, putting into motion landmark property tax reform through a provision that encourages levy transparency and promotes responsible stewardship of taxpayer dollars on the local level. This follows the Ohio House vote to override this veto in July.

The provision was originally included in the recently passed state operating budget, which included numerous provisions aimed at addressing the unprecedented surge in residents’ property tax burdens across the state through the most pro-taxpayer reforms in nearly 50 years.

The provision makes clarifying changes to ballot language, removes the authority for political subdivisions to charge new replacement property tax levies, and removes the authority for school districts to levy fixed-sum emergency or substitute levies, as well as renewal with an increase levies and combined school district income tax and fixed-sum property tax levies. The language also prohibits a district from requesting a new current expense levy if their prior year carryover balance in general operating funds is greater than 100% of expenses.

Rep. Mathews originally introduced the portion encouraging levy transparency by eliminating replacement levies, which commonly result in unexpected property tax increases, in House Bill 28.

“I introduced House Bill 28 to provide needed transparency to our property tax system and protect taxpayers from unexpected tax increases,” said Mathews. “This provision ensures taxpayers have more control over their property tax bills, and I am grateful to our Senate colleagues for voting to override the veto.”

Item 66 makes the following updates:

Encourages Levy Transparency: The language encourages levy transparency and treats school districts like other political subdivisions.
Fiscally Conservative and Responsible: Ensures that school districts do not put new general expense tax levies on the ballot when the school district has over 100% of their expenses in reserves, ensuring fiscal responsibility.

The Ohio House of Representatives voted on the conference committee report for House Bill 96 on June 25th. The budget plan, which allocates funding for state programs and operations for the next two years, included provisions that aimed to protect freedom, family and fiscal responsibility – providing property tax relief for Ohioans, implementing a flat tax rate and ensuring a record amount of state funding for school districts.

On June 30, Governor Mike DeWine signed the Budget bill, but as part of his approval, vetoed 67 provisions passed by the legislature, including several that were intended to provide homeowners with immediate property tax relief in 2026. The Ohio House voted to override this veto on July 21, and the Senate completed the override today to allow the provision to take effect.