COLUMBUS, Ohio — Two new bills introduced by Republican legislators at the Ohio Statehouse Tuesday aim to eliminate the state’s income tax and commercial activities tax.
Those who introduced the bills include state representatives Adam Mathews (Lebanon), Brian Lampton (Beavercreek) and senators George Lang (West Chester) and Stephen Huffman (Tipp City).
Legislators at Tuesday’s press conference said they looked at models in other states while preparing the legislation.
Huffman introduced a similar bill in 2022 -- Senate Bill 327. The Senate bill aimed to repeal state income tax on nonbusiness income with a 10-year phaseout plan. It was referred to the Ways and Means Committee in May 2022, nearly a month after its introduction.
Now, legislators are rolling out a progression of that bill in both the House and Senate to run in parallel. The new bills aim to eliminate both the state income tax and commercial activities tax by 2030.
According to a release, the elimination would be achieved by a phased-in approach that will reduce the top rate of 3.99% to 0% in 2030.
H&R Block, a tax-preparing company, said seven states currently have no income tax. The legislators said when there’s a decrease in taxes, there’s an increase in economic activity.
The Ohio Department of Taxation said it has collected $13 billion in state individual income taxes in 2022. Ohio income tax is a major source of funding for schools and Medicaid.
Both bills await bill numbers and committee assignments.
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