HB 400 Summary

• Phases out Ohio's personal income tax over ten years by reducing tax rates for taxable years 2010-2019, with rates declining from 90% to 0% of the 2009 tax amount.

• Establishes progressive tax rate schedules for taxable years 2004-2009 with rates ranging from 0.587% to 7.5% depending on income level.

• Beginning in 2010, personal income tax liability is multiplied by a declining percentage each year (90% in 2010, 80% in 2011, continuing to 0% in 2019 and thereafter).

• Eliminates the withholding tax on qualifying pass-through entities and trusts for tax years ending after 2018.

• Removes the previous automatic annual adjustment mechanism for income tax brackets based on gross domestic product deflator that was set to begin in 2010.