H.B. 483 Passes: More Ohio Tax Cuts– June 20, 2014 by Karen Raghanti

On June 17th, Governor Kasich signed H.B. 483 into law, which will provide additional tax relief to businesses and individuals in the state of Ohio. The two key updates are as follows:

  • Acceleration of tax cuts from last year’s state budget. H.B. 483 accelerates the full impact of the 10% personal income tax cut, which was originally designed to completely phase in by January 2015. Next year’s scheduled 1% cut will instead be effective retroactively as of January 1, 2014. Shortly after July 1, 2014, income tax withholding rates will be reduced as well.
  • Addition of a small business tax cut. For the 2014 tax year, personal income tax deductions on small business income will increase from 50% to 75% with a maximum allowable deduction amount of $187,500 ($93,750 for married filing separately filers).

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