Flat income tax, unclaimed funds for Browns stadium make final Ohio budget plan

• Ohio’s proposed budget includes a flat income tax of 2.75% for earners above $26,051.
• $600 million in unclaimed funds would go toward a new Cleveland Browns stadium and entertainment district.
• The budget awaits Gov. DeWine’s signature or veto by July 1.

Ohio Republicans will cut taxes for people who earn six figures and use Ohioans’ abandoned money to help pay for a new Cleveland Browns stadium.

The proposals are part of the GOP-controlled Legislature’s compromise budget plan. The House and Senate passed their own versions of the two-year spending bill, then spent days behind closed doors to hash out differences.

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Both chambers are expected to vote on the budget June 25 and send it to Gov. Mike DeWine, who must sign it before July 1. DeWine can also veto individual items he doesn’t support.

Here’s what we know about the budget so far.

Ohio flat income tax

The final budget maintains an income tax cut for Ohioans who earn six figures and taxes everyone making over $26,051 at 2.75%. Currently, the state taxes income over $100,000 at 3.5% and income earned between $26,051 and $100,000 at 2.75%.

People who make less than $26,051 don’t pay income taxes.

“We found a way to give that important new tax relief to Ohioans while also doing a lot of the priorities that we had here in the House,” said Rep. Brian Stewart, R-Ashville, the chief budget negotiator for the House.

The flat tax is the culmination of years of work by Republicans to slash Ohio’s income tax. DeWine has expressed concern about further tax cuts but declined to say June 23 whether he would sign a flat tax into law.

Cleveland Browns stadium set to get $600M in Ohio unclaimed funds

Lawmakers opted for the Senate’s plan to help pay for a new Cleveland Browns stadium and entertainment district in Brook Park.

The budget would use $1.7 billion in unclaimed funds to fund sports and cultural projects, with $600 million reserved for the Browns. Unlike past uses of unclaimed funds, this would allow the state to assume ownership of abandoned paychecks and security deposits after 10 years.

Ohio is currently sitting on $4.8 billion in unclaimed property.

The Senate proposal was one of three dramatically different ideas for the Brook Park development. House Republicans proposed a $600 million bond − which would cost $1 billion with interest − and DeWine wanted to double the sports gaming tax to pay for the Browns’ stadium and other projects.

“Like a lot of things, I’m sure that will be tested in court if that’s what the Legislature ends up doing,” DeWine said of the Senate plan. “I’m sure it’ll be tested, but a lot of things get tested in court.”

This story will be updated.

State government reporter Haley BeMiller can be reached at hbemiller@gannett.com or @haleybemiller on X.

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