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 income thresholds and tax rates for individuals, trusts, and estates, with adjustments to the taxable income amounts for the years 2024, 2025, and 2026. For instance, the tax rate for estates will be adjusted to $26,700 for taxable years beginning in 2025 and $27,350 for taxable years beginning in 2026. Additionally, the bill specifies that the tax on individuals will be calculated based on Ohio adjusted gross income, with new thresholds and rates established for the upcoming years.

Furthermore, the bill includes provisions that prevent the Tax Commissioner from making adjustments to the income amounts in 2025 or 2026, as would typically be required. It also clarifies that individuals with an Ohio adjusted gross income not exceeding the applicable amount described in division (A)(2) can still file a return to receive refunds or claim refundable credits. The existing section 5747.02 is set to be repealed, and the new provisions will take effect as outlined in the bill.

Statutes affected:
As Introduced: 5747.02