H.B. No. 386 Summary

• Phases out Ohio's state income tax on nonbusiness income over six years (2023-2029), reducing tax rates incrementally each year until elimination after December 31, 2029.

• Maintains a 3% tax on business income for individuals after 2030, while eliminating all taxes on nonbusiness income (wages, investment income, etc.).

• Repeals the commercial activity tax after December 31, 2029, eliminating the privilege tax on businesses doing business in Ohio.

• Modifies related sections governing tax credits for job creation, school funding calculations, and other provisions that reference the eliminated income tax provisions.

• Changes definition of "total income" for property tax homestead exemptions to use modified adjusted gross income through 2029, then adjusted gross income for later years.