OH HB23

Creates an income tax reduction fund to be funded by surplus general revenue, oil and gas lease revenues from state lands, and use tax collections from remote sellers, with the Director of Budget and Management transferring money to offset income tax rate reductions made by the tax commissioner.

Directs one-third of all revenue from oil and gas leases on state lands to be deposited into the income tax reduction fund, with the remainder split between the state land royalty fund and a new local royalty fund for counties and subdivisions to use exclusively for capital improvements.

Establishes a local royalty fund distributed to affected counties and subdivisions based on population and road maintenance responsibilities, with funds restricted to capital improvements for roads, bridges, water systems, waste treatment, and public safety vehicles.

Requires the Director of Budget and Management to recommend whether permanent income tax rate reductions should be enacted after certifying that the Income Tax Reduction Fund balance exceeds 0.35% of estimated income tax revenue.

Modifies use tax treatment of remote sellers by directing use tax collections from remote sellers to the income tax reduction fund following the date remote sellers are first required to collect and remit taxes under federal legislation.