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 for tax rates applicable to individuals, trusts, and estates, with adjustments for taxable years beginning in 2024, 2025, and 2026. For instance, the tax rate for estates will be adjusted to $26,700 for 2025 and $27,350 for 2026, while the tax rate for individuals will also see new thresholds and rates, including a 3.125% rate for income over $102,400 starting in 2025.

Additionally, the bill includes provisions that prevent the Tax Commissioner from making adjustments to the income amounts for 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 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 The existing section 5747.02 is set to be repealed, and the new provisions will take effect as outlined in the bill.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