SB 216 Summary

• Phases out state income tax on nonbusiness income over six years from 2023 through 2029 with declining tax rates each year until reaching zero in 2029.

• Retains 3% tax on business income beginning January 1, 2030 for individuals earning business income in Ohio.

• Repeals the commercial activity tax (CAT) after December 31, 2029, eliminating the privilege tax on gross receipts.

• Adjusts income tax thresholds and exemptions annually based on gross domestic product deflator increases beginning in 2025.

• Modifies school funding formulas and property tax provisions to reference modified adjusted gross income definitions consistent with the income tax phase-out.