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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


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Overview

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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