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 individuals on income exceeding $26,700 will be set at 2.75% for the first $102,400, and 3.125% for income above that amount in 2025. Additionally, the bill specifies that the tax commissioner will not make adjustments to income amounts for the years 2025 and 2026, as previously required.

The bill also includes several deletions and insertions to clarify the tax structure and ensure that individuals with adjusted gross income not exceeding the specified thresholds are not subject to tax. It repeals the existing section 5747.02, thereby replacing it with the new provisions outlined in the bill. Overall, the legislation aims to simplify the tax code while providing a more favorable tax rate for Ohio residents over the next few years.

Statutes affected:
As Introduced: 5747.02