Bill > HB617

This bill seeks to repeal the taxation of capital gains in Ohio by amending sections 718.01 and 5747.01 of the Ohio Revised Code. Specifically, the bill removes references to capital gains from the state's income tax definitions and eliminates a previous section related to capital gains taxation. Under the new provisions, net capital gains (as defined by section 1222 of the Internal Revenue Code) will be deducted from an individual's Ohio adjusted gross income, effectively exempting them from state income tax. The bill also requires the Director of Budget and Management to prepare a report by June 30, 2027, analyzing the fiscal impact of this tax change, including its effects on tax revenue and taxpayer behavior. The amendments will apply to taxable years ending on or after the effective date of the section, and the legislation is officially named the "Ohio Capital Gains Tax Repeal Act." By removing capital gains from taxable income, the bill aims to provide tax relief for Ohio residents who earn income through investments and asset sales.

Budget and Finance

https://www.legislature.ohio.gov/legislation/136/hb617