Ohio Senate Bill SB22

Ohio 2025-2026 Regular Session

• Introduced: 1/22/25

Caption

To amend sections 5747.08 and 5747.98 and to enact section 5747.87 of the Revised Code to authorize a refundable income tax credit or rebate for homeowners and renters whose property taxes or a portion of their rent exceed five per cent of their income.

Summary

SB 22 would create a new refundable Ohio income tax credit or rebate for eligible homeowners and renters whose housing costs exceed 5% of household resources. For homeowners, the credit would equal the amount by which property taxes exceed that 5% threshold; for renters, it would be based on a rent-equivalent tax equal to 15% of gross rent, minus the same 5% of household resources threshold. The bill caps the benefit at $1,000 for the first claim year, with future annual inflation-style adjustments tied to the GDP deflator. The bill also defines eligibility, including a six-month occupancy requirement, income/resource limits, and county-based home value and rent limits derived from American Community Survey data. It provides a rebate application process for claimants who do not otherwise file an Ohio income tax return, and it allows claimants who do file returns to claim the benefit as a refundable credit against state income tax liability. The bill further coordinates the new credit with existing tax-credit ordering rules and includes provisions for correcting differences between estimated and actual property tax amounts in later claim years.

Impact

SB 22 would amend Ohio Revised Code sections 5747.08 and 5747.98 and enact new section 5747.87, adding a new refundable housing-cost relief credit/rebate to the state income tax system. It would affect homeowners and renters meeting the bill’s income and occupancy criteria, and it would also affect the Department of Taxation by requiring new forms, annual limit calculations, and administration of rebate claims. The bill would integrate the new credit into Ohio’s existing credit-ordering framework and make the credit available beginning with claim years ending on or after the effective date.

Sentiment

Based on the bill text and available context, the measure appears to be framed as targeted tax relief for households facing high property taxes or rent burdens, with a policy goal of helping lower- and moderate-income residents. There are no recorded committee transcripts or votes in the provided materials, so no formal support or opposition is documented here. The structure of the bill suggests a generally consumer- and taxpayer-relief-oriented approach rather than a broad tax cut.

Contention

The main policy questions likely concern eligibility design and fiscal cost. The bill uses a 5% of household resources threshold, a $1,000 initial cap, and countywide home-value and rent limits, which may draw scrutiny over whether the benefit is sufficiently targeted or whether the limits exclude some high-cost households. Another likely point of contention is administrative complexity, including the need to calculate annual limits, process rebates for nonfilers, and reconcile estimated versus actual property tax amounts. Renters may also be a focus because the bill uses a rent-equivalent formula rather than actual property tax payments, which could raise questions about fairness and how much relief renters would receive compared with homeowners.