Bill > HB209

This bill proposes to exempt tips from state, municipal, and school district income taxes. Specifically, the bill amends three sections of the Ohio Revised Code (718.01, 5747.01, and 5748.01) to remove tips from the definition of taxable income at the state and local levels. The changes would allow workers to exclude tips from their income when calculating state income taxes, municipal income taxes, and school district income taxes. The amendment applies to taxable years ending on or after the effective date of the legislation. This means that for tax purposes, tips would no longer be considered part of an individual's taxable income, potentially reducing the tax burden for workers in industries where tipping is common, such as restaurants, bars, and personal services. The bill aims to provide financial relief to service workers by allowing them to keep more of their tip income without tax withholdings.

Budget and Finance

https://www.legislature.ohio.gov/legislation/136/hb209