COLUMBUS — State Senator Mark Romanchuk (R-Ontario) strongly supports the final version of the $85.8 billion budget plan passed by the Ohio Senate, especially the historic $3.1 billion in tax relief that returns this hard-earned money to the taxpayers.
“Each budget that I have been a part of, we have cut Ohio’s income tax. I’m proud to continue that record of working for the benefit of every Ohioan,” said Romanchuk. “I’m equally proud that almost 90% of Ohio’s businesses will no longer have to pay any Commercial Activity Tax.
“And now that we’ve extended the August sales tax holiday to two weeks, I think we have delivered big-time for all Ohioans, especially families.”
The senator praised the move toward a fair and simplified flat-tax approach, as the budget reduces the number of tax brackets to only two over the biennium. The marginal rates will be 2.75% over $26,050 and 3.5% over $92,150. Ohioans making $26,050 or less pay no income taxes.
Romanchuk detailed how the budget provides significant tax relief to businesses by implementing considerable reforms to the Commercial Activity Tax. Businesses will pay no taxes on the first $3 million of gross receipts in tax year 2024, and will pay no taxes on the first $6 million of gross receipts in tax year 2025.
After the year 2025, those businesses with a revenue above $6 million will also see continued tax reductions.
Historic Funding Increase for K-12 Education
The Senate’s budget plan includes historic funding and policy improvements to K-12 funding that is focused on accountability and options for parents.
The Senate school funding plan maintains the updated 2022 salary and spending criteria used for determining the base cost, and then adds an additional $1.3 billion to school funding. Total foundation funding for students in public schools under the Senate plan is a record $9.3 billion in FY24 & almost $9.6 billion FY25.
The budget now moves to the Ohio House, and must be balanced and signed into law by June 30.
