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Multistate Tax Alert: Ohio Enacts Budget Bill

Changes to personal income tax provisions, sales and use tax rates, and property tax reform



On June 30, 2013, Ohio Governor John Kasich signed House Bill 59 (“H.B. 59”) into law. The
following are among the more significant amendments to Ohio tax law:

  • Decreases the personal income tax rate by 10% over the next three years (from
    5.925% to 5.333% for tax years beginning in 2015)
    • Also created a “Small Business Tax Cut”, which provides up to an estimated
      $7,000 in annual individual income tax relief for small business owners
  • Enacts a new motor fuels excise tax in place of the Commercial Activity Tax for sales
    of motor fuel
  • Implements a tiered minimum tax structure for the Commercial Activity Tax
  • Increases the state base sales and use tax rate from (5.5% to 5.75%), and imposes
    sales and use tax on certain digital goods and magazine subscriptions
  • Eliminates the state-paid 12.5% subsidy of county and local property taxes

Find out more about the Ohio tax law changes by downloading our summary.

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