H.B. 308 Summary

• Increases the marginal income tax rate for individuals, estates, and trusts with taxable income exceeding $200,000 from 5.925% to 7.5% for taxable years beginning in 2009 or thereafter.

• Creates two new tax brackets for income over $200,000: income between $200,000 and $500,000 taxed at 7.5%, and income over $500,000 taxed at 8.5%.

• Maintains existing tax brackets and rates for all income below $200,000 across all taxable years (2004-2009+).

• Requires annual adjustments to income bracket thresholds beginning in 2010 based on the gross domestic product deflator, rounded to the nearest $50, while keeping tax rates fixed.

• Applies the increased rates to individuals, estates, and trusts as defined under Ohio tax law, with existing credits and deductions continuing to apply.