07/26/2023

Message From Beth -- July 26, 2023

The Ohio biennial budget bill was signed by the Governor on July 3, 2023 totalling $190 billion in appropriations over the next two years.   The economic outlook for Ohio is strong with tax receipts exceeding expectations in fiscal year 2023 by nearly $1 billion. This allowed the legislature to reduce Ohio’s income tax rates and number of tax brackets-- beginning in 2024 those earning $26,050-$100,000 the tax rate will be 2.75% and those earning over $100,000 will have a 3.5% tax rate. In addition, the Commercial Activity Tax will be reduced by providing a $3 million exclusion for a business’ gross receipts in 2024 and increases the exclusion amount to $6 million in 2025.

The budget focused on education, job creation, economic development, infrastructure, tax cuts and mental health.  Key budget items and vetos are included in ACEC Ohio Legislative Update--July 1, 2023  and click here for HB 33 documents.

As we enter fiscal year 2024 in Ohio, the latest data released by the Office of Budget and Management (OBM) indicates that Ohio finances are in sound condition.  Strong revenues are being recorded for non-auto sales tax, auto sales tax, personal income tax and commercial activity tax.  This will allow the administration to continue to fund major policy priorities such as those in the recently passed budget bill. If you are interested in OBM’s monthly report, click here for the details.

Feel free to contact me with questions,

~Beth