HB 598 Summary

• Exempts retirement income of public safety personnel (police, firefighters, highway patrol) from Ohio state income tax by modifying sections 145.56, 5505.22, and 5747.01 of the Revised Code

• Establishes a reimbursement mechanism through section 131.51 to compensate the Local Government Fund and Public Library Fund for revenue losses resulting from the tax exemption, using 1.7% of supplemental tax distributions

• Applies to retirement allowance payments received by individuals who retired under specified sections related to public employees retirement system, Ohio police and fire pension fund, and highway patrol retirement system, as well as surviving spouses and beneficiaries

• Creates a "supplemental distribution" calculation to determine the monthly amount owed to local governments and libraries based on estimated tax revenue losses from the exemption

• Effective for taxable years ending on or after the bill's effective date