HB 382 Summary

• Prohibits municipal income tax on nonresidents' compensation: Municipal corporations cannot levy income tax on compensation earned by nonresidents for personal services performed in the municipality.

• Prohibits tax on nonresident sole proprietorship net profits: Municipal corporations are prohibited from taxing net profits from businesses or professions operated as sole proprietorships by nonresidents.

• Amendments to municipal income tax law: Modifies sections 718.01-718.05 and other provisions of the Revised Code governing municipal income taxation to clarify tax treatment of nonresident income.

• Repeals certain sections: Repeals sections 718.011 and 718.50 of the Revised Code related to withholding and tax administration.

• Effective date: Changes apply to municipal taxable years beginning on or after January 1, 2020.