Ohio 2023-2024 Regular Session

Ohio Senate Bill SB216

Caption

Phase-out state income tax; repeal commercial activity tax

Impact

The legislation asserts that removing the income tax could attract a broader base of residents and businesses to Ohio, potentially leading to higher overall economic output. However, it also raises concerns about how the state will meet its funding obligations for public services, particularly education and infrastructure, without the revenue generated from these taxes. The proposed tax changes would necessitate careful planning to avoid budget deficits while transitioning to a new tax framework that relies on different sources of revenue.

Summary

Senate Bill 216 aims to significantly overhaul Ohio's tax structure by phasing out the state income tax on nonbusiness income over a period of six years and repealing the commercial activity tax after 2029. This initiative intends to stimulate economic growth by providing tax relief to individuals and businesses, making Ohio a more attractive place for economic activity. The bill outlines specific tax brackets for income tax and implements a new framework for businesses and households alike while ensuring that essential state revenues continue to be generated through alternative means.

Contention

Opponents of SB216 have raised alarms over the potential financial implications for the state's budget. Critics argue that eliminating income and commercial activity taxes could lead to reduced funding for critical public services, emphasizing that such tax cuts primarily benefit higher-income individuals and corporations. Furthermore, opponents express concerns that the legislation disproportionately favors larger corporations and megaprojects at the expense of small businesses and local economies, reminding stakeholders of the historical precedent of tax cuts that favor specific interests rather than serving the broader population.

Companion Bills

No companion bills found.

Previously Filed As

OH HB386

Phase-out state income tax; repeal commercial activity tax

OH HB200

Modify tax: income subject to other state pass-through entity tax

OH SB59

Exempt firearms and ammunition from sales and use tax

OH SB3

Phase-down the state income tax to a flat rate of 2.75%

OH SB171

Temporarily authorize income tax credit for certain investments

OH HF3115

Individual income tax and corporate franchise tax phased out.

OH HB30

Phase-down the state income tax to a flat rate of 2.75%

OH SB256

Modify the earned income tax credit; increase the minimum wage

OH SB142

Phase out subminimum wage for individuals with disabilities

OH HB209

Exempt tips from state, municipal, school district income taxes

Similar Bills

OH HB386

Phase-out state income tax; repeal commercial activity tax

IL HB4655

REVENUE-MEGAPROJECT

IL HB4040

REVENUE-MEGAPROJECTS

IL HB0610

REVENUE-TECH

OH SB190

Enact A Good Deal for Ohio Act

IL HB2403

REVENUE-MEGAPROJECTS

IL SB1514

REVENUE-MEGAPROJECT

OH HB499

Create grants for housing near megaprojects; revise property law