Effective July 1, 2013, tax law changes approved by Ohio Governor John Kasich and the Ohio General Assembly in the biennial budget provided a $2.7 billion tax cut to Ohio businesses and individuals.
The measures include a 10% personal income tax cut phased in over the next three years, a 50% tax deduction on the first $250,000 of income for businesses structured as pass-through entities, and a new earned income tax credit for lower-income households. In addition, changes were made to the state sales and use tax, income tax, Commercial Activity Tax, Motor Fuel Receipts Tax, real property tax, and tobacco tax.
For the Ohio Department of Taxation’s recent release on the modifications affecting Ohio income tax click here.
Continuing updates can be found at www.tax.ohio.gov or by contacting your tax professional.