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 income amounts 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 individuals will see their tax brackets modified accordingly. The bill also specifies that the tax commissioner will not make adjustments to the income amounts for 2025 or 2026, as previously required.

Additionally, the bill removes certain provisions regarding tax rates and income thresholds that were previously in place, such as the specific dollar amounts for tax brackets and the requirement for annual adjustments based on the gross domestic product deflator. It 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. Overall, the bill aims to simplify the tax structure while providing a gradual reduction in tax rates for Ohio residents.

Statutes affected:
As Introduced: 5747.02