On June 30th, Governor Kasich signed the budget bill for the 2018-2019 fiscal year. In addition to retaining the Business Income Deduction of 100% of business income up to $250,000 and subsequent tax rate of 3% on excess business income, the bill includes the following provisions:
1. Reduces the number of tax brackets from 9 to 7, eliminating the lowest two brackets.
2. Increases the college savings deduction from $2,000 annually per beneficiary to $4,000 – starting in tax year 2018.
Implements a tax amnesty program from January 1st of 2018 to February 15, 2018 for most state taxes due as of May 1, 2017.
The commissioner will waive all applicable penalties and half of the interest due on the liabilities. Eligible tax liabilities include: CAT, state income tax, state and local sales and use tax and school district taxes, as well as financial institutions tax, alcohol and tobacco, cigarette and excise taxes.
Credit: Rudler PSC