OSCPA staff report
The Ohio House on Wednesday passed House
Bill 33, Ohio’s
budget legislation for fiscal years 2024-2025, by a wide
officially sending the bill to the Senate where hearings have
Included in the bill are several OSCPA tax priorities
such as conforming state to federal law on bonus depreciation (See separate
article), as well as a number of provisions targeting improving Ohio’s workforce
A top priority of the House was to keep chipping away at
Ohio’s personal income tax rates and brackets in the budget bill. While their
goal of a flat tax rate was not achieved, House leaders did eliminate another
tax bracket, cutting costs for low- and middle-class Ohioans. In the
bill’s current form, the revised budget bill would raise the level at which
Ohioans would not pay any income tax up to their first $26,050 of income – up
from $25,000 in current law. It also
would eliminate a middle-class tax bracket, with the result that lower- and
middle-income Ohioans those making up to $92,150 per year would pay the
same reduced income tax rate – 2.75%. The House didn’t
change the top two rates.
We recognize that Ohio CPAs work in essentially every industry in Ohio. To assist you in finding the latest status of provisions specifically impacting your areas of concern, check out this comprehensive summary of House changes. On a broader scale, the bill continues to address in some form issues impacting all Ohioans including school funding reform, affordable housing to address current shortages, child care issues for lower-income workers, and other workforce-related challenge such as economic development site preparation.
Numerous Senate hearings will take place in the next few weeks on this 4,600-page bill chock full of funding and public policy issues. Per the Ohio Constitution, the final budget bill must be signed into law by Gov. DeWine before July 1.