Reviewing Ohio’s biennial budget: Insights from the ODT Virtual Tax Academy

The Ohio Department of Taxation used its Sept. 10 Ohio Virtual Tax Academy to highlight major tax provisions included in the 136th General Assembly’s budget bill, House Bill 96. The legislation makes broad updates across Ohio’s tax code, impacting individuals, businesses and local governments. 

Sales and use tax policy was significantly revised, with the elimination of several long-standing exemptions. Among those repealed are exemptions for warranty-related motor vehicle rentals, refrigerated food vending machines, advertising materials and catalogs, certain direct marketing purchases, telecom services at qualified call centers, and tangible personal property used in electronic publishing. 

Business tax provisions were also addressed. The Commercial Activity Tax (CAT) was amended by converting the Net Operating Loss credit from refundable to nonrefundable. In addition, the budget sets new compliance rules for Pass-Through Entity (PTE) taxpayers. For taxable years beginning on or after January 1, 2026, estimated payments will be due quarterly, on April 15, June 15, Sept. 15, and Dec. 15, mirroring federal deadlines. 

For further information, materials are available through the Ohio Legislative Service Commission and the Ohio General Assembly, which provide detailed analysis and legislative text for the enacted provisions.