The bill amends section 5747.02 of the Revised Code to implement a phased reduction of the state income tax to a flat rate of 2.75% over a two-year period. Specifically, it introduces new tax brackets and rates for individuals, trusts, and estates, with adjustments to income thresholds for taxation beginning in 2024, 2025, and 2026. For instance, the income threshold for estates will increase from $26,050 to $26,700 in 2025 and to $27,350 in 2026, while the tax rate for individuals on income exceeding these thresholds will be adjusted accordingly.

Additionally, the bill includes provisions that prevent the Tax Commissioner from making adjustments to the income amounts for the years 2025 and 2026, as would typically be required. It also clarifies that individuals with an Ohio adjusted gross income not exceeding the applicable amount described in the new tax brackets can still file a return to receive refunds or claim refundable credits. The existing section 5747.02 is repealed, and the new provisions will take effect as outlined in the bill.

Statutes affected:
As Introduced: 5747.02