OH HB209

Summary of Ohio H.B. 209

• Exempts tips from Ohio state income tax by adding tips as a deductible item from Ohio adjusted gross income for individual taxpayers

• Exempts tips from municipal income taxes by adding tips to the list of "exempt income" under Ohio's municipal income tax code (Chapter 718)

• Exempts tips from school district income taxes by removing "tips" from the definition of taxable income for school district income tax purposes, which currently includes "wages, salaries, tips, and other employee compensation"

• Applies to taxable years ending on or after the effective date of the legislation, affecting all three levels of Ohio income taxation simultaneously