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S. B. No. 210 As IntroducedAs Introduced
130th General Assembly  Regular Session  20132014 
 
Cosponsors:
Senators Faber, Patton, Obhof, Oelslager
A BILL
To amend section 5747.02 of the Revised Code to
provide for a permanent income tax rate reduction
of 4% for all tax brackets beginning in 2014.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 5747.02 of the Revised Code be
amended to read as follows:
Sec. 5747.02. (A) For the purpose of providing revenue for
the support of schools and local government functions, to provide
relief to property taxpayers, to provide revenue for the general
revenue fund, and to meet the expenses of administering the tax
levied by this chapter, there is hereby levied on every
individual, trust, and estate residing in or earning or receiving
income in this state, on every individual, trust, and estate
earning or receiving lottery winnings, prizes, or awards pursuant
to Chapter 3770. of the Revised Code, on every individual, trust,
and estate earning or receiving winnings on casino gaming, and on
every individual, trust, and estate otherwise having nexus with or
in this state under the Constitution of the United States, an
annual tax measured in the case of individuals by Ohio adjusted
gross income less an exemption for the taxpayer, the taxpayer's
spouse, and each dependent as provided in section 5747.025 of the
Revised Code; measured in the case of trusts by modified Ohio
taxable income under division (D) of this section; and measured in
the case of estates by Ohio taxable income. The tax imposed by
this section on the balance thus obtained is hereby levied as
follows:
(1) For taxable years beginning in 2004:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 



OR 



MODIFIED OHIO 



TAXABLE INCOME (TRUSTS) 



OR 



OHIO TAXABLE INCOME (ESTATES) 
TAX 


$5,000 or less 

.743% 


More than $5,000 but not more than $10,000 

$37.15 plus 1.486% of the amount in excess of $5,000 


More than $10,000 but not more than $15,000 

$111.45 plus 2.972% of the amount in excess of $10,000 


More than $15,000 but not more than $20,000 

$260.05 plus 3.715% of the amount in excess of $15,000 


More than $20,000 but not more than $40,000 

$445.80 plus 4.457% of the amount in excess of $20,000 


More than $40,000 but not more than $80,000 

$1,337.20 plus 5.201% of the amount in excess of $40,000 


More than $80,000 but not more than $100,000 

$3,417.60 plus 5.943% of the amount in excess of $80,000 


More than $100,000 but not more than $200,000 

$4,606.20 plus 6.9% of the amount in excess of $100,000 


More than $200,000 

$11,506.20 plus 7.5% of the amount in excess of $200,000 


(2) For taxable years beginning in 2005:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 



OR 



MODIFIED OHIO 



TAXABLE INCOME (TRUSTS) 



OR 



OHIO TAXABLE INCOME (ESTATES) 
TAX 


$5,000 or less 

.712% 


More than $5,000 but not more than $10,000 

$35.60 plus 1.424% of the amount in excess of $5,000 


More than $10,000 but not more than $15,000 

$106.80 plus 2.847% of the amount in excess of $10,000 


More than $15,000 but not more than $20,000 

$249.15 plus 3.559% of the amount in excess of $15,000 


More than $20,000 but not more than $40,000 

$427.10 plus 4.27% of the amount in excess of $20,000 


More than $40,000 but not more than $80,000 

$1,281.10 plus 4.983% of the amount in excess of $40,000 


More than $80,000 but not more than $100,000 

$3,274.30 plus 5.693% of the amount in excess of $80,000 


More than $100,000 but not more than $200,000 

$4,412.90 plus 6.61% of the amount in excess of $100,000 


More than $200,000 

$11,022.90 plus 7.185% of the amount in excess of $200,000 


(3) For taxable years beginning in 2006:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 



OR 



MODIFIED OHIO 



TAXABLE INCOME (TRUSTS) 



OR 



OHIO TAXABLE INCOME (ESTATES) 
TAX 


$5,000 or less 

.681% 


More than $5,000 but not more than $10,000 

$34.05 plus 1.361% of the amount in excess of $5,000 


More than $10,000 but not more than $15,000 

$102.10 plus 2.722% of the amount in excess of $10,000 


More than $15,000 but not more than $20,000 

$238.20 plus 3.403% of the amount in excess of $15,000 


More than $20,000 but not more than $40,000 

$408.35 plus 4.083% of the amount in excess of $20,000 


More than $40,000 but not more than $80,000 

$1,224.95 plus 4.764% of the amount in excess of $40,000 


More than $80,000 but not more than $100,000 

$3,130.55 plus 5.444% of the amount in excess of $80,000 


More than $100,000 but not more than $200,000 

$4,219.35 plus 6.32% of the amount in excess of $100,000 


More than $200,000 

$10,539.35 plus 6.87% of the amount in excess of $200,000 


(4) For taxable years beginning in 2007:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 



OR 



MODIFIED OHIO 



TAXABLE INCOME (TRUSTS) 



OR 



OHIO TAXABLE INCOME (ESTATES) 
TAX 


$5,000 or less 

.649% 


More than $5,000 but not more than $10,000 

$32.45 plus 1.299% of the amount in excess of $5,000 


More than $10,000 but not more than $15,000 

$97.40 plus 2.598% of the amount in excess of $10,000 


More than $15,000 but not more than $20,000 

$227.30 plus 3.247% of the amount in excess of $15,000 


More than $20,000 but not more than $40,000 

$389.65 plus 3.895% of the amount in excess of $20,000 


More than $40,000 but not more than $80,000 

$1,168.65 plus 4.546% of the amount in excess of $40,000 


More than $80,000 but not more than $100,000 

$2,987.05 plus 5.194% of the amount in excess of $80,000 


More than $100,000 but not more than $200,000 

$4,025.85 plus 6.031% of the amount in excess of $100,000 


More than $200,000 

$10,056.85 plus 6.555% of the amount in excess of $200,000 


(5) For taxable years beginning in 2008, 2009, or 2010:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 



OR 



MODIFIED OHIO 



TAXABLE INCOME (TRUSTS) 



OR 



OHIO TAXABLE INCOME (ESTATES) 
TAX 


$5,000 or less 

.618% 


More than $5,000 but not more than $10,000 

$30.90 plus 1.236% of the amount in excess of $5,000 


More than $10,000 but not more than $15,000 

$92.70 plus 2.473% of the amount in excess of $10,000 


More than $15,000 but not more than $20,000 

$216.35 plus 3.091% of the amount in excess of $15,000 


More than $20,000 but not more than $40,000 

$370.90 plus 3.708% of the amount in excess of $20,000 


More than $40,000 but not more than $80,000 

$1,112.50 plus 4.327% of the amount in excess of $40,000 


More than $80,000 but not more than $100,000 

$2,843.30 plus 4.945% of the amount in excess of $80,000 


More than $100,000 but not more than $200,000 

$3,832.30 plus 5.741% of the amount in excess of $100,000 


More than $200,000 

$9,573.30 plus 6.24% of the amount in excess of $200,000 


(6) For taxable years beginning in 2011 or 2012:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 



OR 



MODIFIED OHIO 



TAXABLE INCOME (TRUSTS) 



OR 



OHIO TAXABLE INCOME (ESTATES) 
TAX 


$5,000 or less 

.587% 


More than $5,000 but not more than $10,000 

$29.35 plus 1.174% of the amount in excess of $5,000 


More than $10,000 but not more than $15,000 

$88.05 plus 2.348% of the amount in excess of $10,000 


More than $15,000 but not more than $20,000 

$205.45 plus 2.935% of the amount in excess of $15,000 


More than $20,000 but not more than $40,000 

$352.20 plus 3.521% of the amount in excess of $20,000 


More than $40,000 but not more than $80,000 

$1,056.40 plus 4.109% of the amount in excess of $40,000 


More than $80,000 but not more than $100,000 

$2,700.00 plus 4.695% of the amount in excess of $80,000 


More than $100,000 but not more than $200,000 

$3,639.00 plus 5.451% of the amount in excess of $100,000 


More than $200,000 

$9,090.00 plus 5.925% of the amount in excess of $200,000 


(7) For taxable years beginning in 2013:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 



OR 



MODIFIED OHIO 



TAXABLE INCOME (TRUSTS) 



OR 



OHIO TAXABLE INCOME (ESTATES) 
TAX 


$5,000 or less 

.537% 


More than $5,000 but not more than $10,000 

$26.86 plus 1.074% of the amount in excess of $5,000 


More than $10,000 but not more than $15,000 

$80.57 plus 2.148% of the amount in excess of $10,000 


More than $15,000 but not more than $20,000 

$187.99 plus 2.686% of the amount in excess of $15,000 


More than $20,000 but not more than $40,000 

$322.26 plus 3.222% of the amount in excess of $20,000 


More than $40,000 but not more than $80,000 

$966.61 plus 3.760% of the amount in excess of $40,000 


More than $80,000 but not more than $100,000 

$2,470.50 plus 4.296% of the amount in excess of $80,000 


More than $100,000 but not more than $200,000 

$3,329.68 plus 4.988% of the amount in excess of $100,000 


More than $200,000 

$8,317.35 plus 5.421% of the amount in excess of $200,000 


(8) For taxable years beginning in 2014:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 



OR 



MODIFIED OHIO 



TAXABLE INCOME (TRUSTS) 



OR 



OHIO TAXABLE INCOME (ESTATES) 
TAX 


$5,000 or less 

.534 .513% 


More than $5,000 but not more than $10,000 

$26.71 25.63 plus 1.068 1.025% of the amount in excess of $5,000 


More than $10,000 but not more than $15,000 

$80.13 76.90 plus 2.137 2.052% of the amount in excess of $10,000 


More than $15,000 but not more than $20,000 

$186.96 179.47 plus 2.671 2.564% of the amount in excess of $15,000 


More than $20,000 but not more than $40,000 

$320.50 307.68 plus 3.204 3.076% of the amount in excess of $20,000 


More than $40,000 but not more than $80,000 

$961.32 922.85 plus 3.739 3.589% of the amount in excess of $40,000 


More than $80,000 but not more than $100,000 

$2,457.00 2,358.62 plus 4.272 4.101% of the amount in excess of $80,000 


More than $100,000 but not more than $200,000 

$3,311.49 3,178.85 plus 4.960 4.762% of the amount in excess of $100,000 


More than $200,000 

$8,271.90 7,940.45 plus 5.392 5.176% of the amount in excess of $200,000 


(9) For taxable years beginning in 2015 or thereafter:
OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 



OR 



MODIFIED OHIO 



TAXABLE INCOME (TRUSTS) 



OR 



OHIO TAXABLE INCOME (ESTATES) 
TAX 


$5,000 or less 

.528 .507% 


More than $5,000 but not more than $10,000 

$26.41 25.34 plus 1.057 1.015% of the amount in excess of $5,000 


More than $10,000 but not more than $15,000 

$79.24 76.08 plus 2.113 2.028% of the amount in excess of $10,000 


More than $15,000 but not more than $20,000 

$184.90 177.50 plus 2.642 2.536% of the amount in excess of $15,000 


More than $20,000 but not more than $40,000 

$316.98 304.32 plus 3.169 3.042% of the amount in excess of $20,000 


More than $40,000 but not more than $80,000 

$950.76 912.77 plus 3.698 3.550% of the amount in excess of $40,000 


More than $80,000 but not more than $100,000 

$2,430.00 2,332.80 plus 4.226 4.057% of the amount in excess of $80,000 


More than $100,000 but not more than $200,000 

$3,275.10 3,144.19 plus 4.906 4.710% of the amount in excess of $100,000 


More than $200,000 

$8,181.00 7,853.95 plus 5.333 5.120% of the amount in excess of $200,000 


In August of each year, the tax commissioner shall adjust the
income amounts prescribed in this division by multiplying the
percentage increase in the gross domestic product deflator
computed that year under section 5747.025 of the Revised Code by
each of the income amounts resulting from the adjustment under
this division in the preceding year, adding the resulting product
to the corresponding income amount resulting from the adjustment
in the preceding year, and rounding the resulting sum to the
nearest multiple of fifty dollars. The tax commissioner also shall
recompute each of the tax dollar amounts to the extent necessary
to reflect the adjustment of the income amounts. The rates of
taxation shall not be adjusted.
The adjusted amounts apply to taxable years beginning in the
calendar year in which the adjustments are made. The tax
commissioner shall not make such adjustments in any year in which
the amount resulting from the adjustment would be less than the
amount resulting from the adjustment in the preceding year. The
commissioner shall not make such adjustments for taxable years
beginning in 2013, 2014, or 2015.
(B) If the director of budget and management makes a
certification to the tax commissioner under division (B) of
section 131.44 of the Revised Code, the amount of tax as
determined under division (A) of this section shall be reduced by
the percentage prescribed in that certification for taxable years
beginning in the calendar year in which that certification is
made.
(C) The levy of this tax on income does not prevent a
municipal corporation, a joint economic development zone created
under section 715.691, or a joint economic development district
created under section 715.70 or 715.71 or sections 715.72 to
715.81 of the Revised Code from levying a tax on income.
(D) This division applies only to taxable years of a trust
beginning in 2002 or thereafter.
(1) The tax imposed by this section on a trust shall be
computed by multiplying the Ohio modified taxable income of the
trust by the rates prescribed by division (A) of this section.
(2) A resident trust may claim a credit against the tax
computed under division (D) of this section equal to the lesser of
(1) the tax paid to another state or the District of Columbia on
the resident trust's modified nonbusiness income, other than the
portion of the resident trust's nonbusiness income that is
qualifying investment income as defined in section 5747.012 of the
Revised Code, or (2) the effective tax rate, based on modified
Ohio taxable income, multiplied by the resident trust's modified
nonbusiness income other than the portion of the resident trust's
nonbusiness income that is qualifying investment income. The
credit applies before any other applicable credits.
(3) The credits enumerated in divisions (A)(1) to (13) of
section 5747.98 of the Revised Code do not apply to a trust
subject to division (D) of this section. Any credits enumerated in
other divisions of section 5747.98 of the Revised Code apply to a
trust subject to division (D) of this section. To the extent that
the trust distributes income for the taxable year for which a
credit is available to the trust, the credit shall be shared by
the trust and its beneficiaries. The tax commissioner and the
trust shall be guided by applicable regulations of the United
States treasury regarding the sharing of credits.
(E) For the purposes of this section, "trust" means any trust
described in Subchapter J of Chapter 1 of the Internal Revenue
Code, excluding trusts that are not irrevocable as defined in
division (I)(3)(b) of section 5747.01 of the Revised Code and that
have no modified Ohio taxable income for the taxable year,
charitable remainder trusts, qualified funeral trusts and preneed
funeral contract trusts established pursuant to sections 4717.31
to 4717.38 of the Revised Code that are not qualified funeral
trusts, endowment and perpetual care trusts, qualified settlement
trusts and funds, designated settlement trusts and funds, and
trusts exempted from taxation under section 501(a) of the Internal
Revenue Code.
Section 2. That existing section 5747.02 of the Revised Code
is hereby repealed.

