02/13/2024

House Bill 1

Lead Sponsors: Representative Adam Mathews

Status: 7th Hearing in House Ways and Means Committee (April 25, 2023)

Description: The bill eliminates the graduated personal income tax structure currently in place and replaces it with a flat tax rate of $360.69 plus 2.75% of income above $26,050. 

The bill also makes substantial changes to Ohio's property tax system by decreasing the percentage of a property's value subject to taxation from 35% to 31.5%, by indexing the 31.5% rate so it decreases as inflation increases, by repealing the 10% nonbusiness usage tax rollback, by repealing the 2.5% homestead rollback, and by replacing the repealed 2.5% rollback with a flat $125 property tax credit for all owner-occupied homes.

CCAO Position: Opponent

Other Notes: Cuyahoga County, the Franklin County Auditor, the Ohio Township Association, the Ohio Mayors Alliance, and the Ohio Municipal League all provided opponent testimony.