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 to the income amounts for taxable years beginning in 2024, 2025, and 2026. For instance, the tax rate for individuals on income exceeding $26,700 will be 2.75% for the first $102,400, and 3.125% for income above that threshold starting in 2025. Additionally, the bill specifies that the tax commissioner will not make adjustments to the income amounts for 2025 or 2026, as previously required.

The bill also includes several deletions and insertions to clarify the tax structure and ensure that individuals with an Ohio adjusted gross income not exceeding the applicable amount can still file a return to receive refunds or claim credits. The existing section 5747.02 is set to be repealed, and the new provisions will take effect, reflecting the changes in tax rates and income thresholds as outlined in the bill. Overall, the legislation aims to simplify the tax code while providing a more uniform tax rate for Ohio residents.

Statutes affected:
As Introduced: 5747.02