S.B. No. 198 Summary

• Prohibits municipal corporations from levying income tax on nonresidents' compensation for personal services or net profits from sole proprietorships owned by nonresidents.

• Amends Ohio Revised Code sections 709.023, 718.01, 718.02, 718.03, 718.04, 718.05, and 718.16 while repealing sections 718.011 and 718.50.

• Exempts compensation paid to persons performing personal services for political subdivisions on property owned by those subdivisions after annexation to a municipal corporation, unless taxable due to residency.

• Applies to municipal taxable years beginning on or after January 1, 2016.