Ohio Legislature Schedules Override Votes to Governor DeWine’s Property Tax Vetoes

07/09/25

The Ohio state operating budget, House Bill 96, for Fiscal Years 2026-27 (July 2025 - June 2027) has now passed. However, Governor Mike DeWine issued a record 67 line-items vetoes to the bill immediately prior to signing it into law on June 30. Line-item vetoes to the budget - the biggest piece of legislation every two-year General Assembly - are one of the key powers the Governor has, and they implement the final changes to the bill. However, the legislature can opt to hold votes to override any of his vetoes, and they are officially meeting this month to do so on a handful of these items. You can read our veto update from last week here .

A major focus of the budget was a handful of Property Tax Reform items, as this is a priority issue for the state legislature in the current 136^th General Assembly. Four main tax reform provisions were included in the bill that passed out the legislature.These items were aimed at addressing unvoted increases tied to certain school levies, budget commission powers, and challenges to valuations. Since school funding in Ohio is heavily tied to property taxes, educator groups and some communities who would be affected more than others vocally opposed these items. Prior to signing, the Governor issued vetoes for all four provisions, citing concern with rolling out all the changes at once and the impact of doing that on schools and their communities.

However, as mentioned earlier the Governor's vetoes are not the final card to be played. The legislature has the power to override his vetoes, and this week the House announced they would be holding a specially scheduled session on Monday, July 21 to vote to override these vetoes. A three-fifths vote of the members in both the Ohio House of Representatives and the Ohio Senate is required to override. This means that 60 votes are needed in the House and 20 votes are needed in the Senate. The process of overriding a veto must begin in the house where the bill originated. For context, Republicans hold supermajorities that meet those thresholds in both chambers, and the budget had passed the legislature prior to these vetoes along party lines. If an override vote on a vetoed item is successful, the respective provision returns to the legislature-passed language.

Here is a breakdown of the Property Tax Reform provisions in the budget that were removed through veto:

· Cash Balance Carry-Over: Removed the requirement for county budget commissions to reduce school district levy rates. This change allows school districts to maintain financial stability and manage their budgets effectively.

· County Budget Commission Authority & Procedure: Removed the authority for county budget commissions to reduce voter-approved levies. This change respects the decisions made by voters and maintains local control over tax rates.

· 20-Mill Floor Calculation: Removed the inclusion of certain levies in the 20-mill floor calculation. This decision maintains the current funding structure for school districts and prevents potential financial instability.

· School District Property Tax Levy Restrictions: Removed the elimination of authority for political subdivisions to levy replacement property tax levies. This change supports local control over tax decisions and ensures continued funding for essential services.

As of today, the cash balance carry-over provision is not on the House agenda for the veto override session, but the other three items are. The agenda is subject to change over the next week and we are monitoring if any other of the 67 line-item vetoes will be added for an override vote.

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