2006 Ohio Revised Code - 5747.02. Rates of taxation.

§ 5747.02. Rates of taxation.
 

(A)  For the purpose of providing revenue for the support of schools and local government functions, to provide relief to property taxpayers, to provide revenue for the general revenue fund, and to meet the expenses of administering the tax levied by this chapter, there is hereby levied on every individual, trust, and estate residing in or earning or receiving income in this state, on every individual, trust, and estate earning or receiving lottery winnings, prizes, or awards pursuant to Chapter 3770. of the Revised Code, and on every individual, trust, and estate otherwise having nexus with or in this state under the Constitution of the United States, an annual tax measured in the case of individuals by Ohio adjusted gross income less an exemption for the taxpayer, the taxpayer's spouse, and each dependent as provided in section 5747.025 [5747.02.5] of the Revised Code; measured in the case of trusts by modified Ohio taxable income under division (D) of this section; and measured in the case of estates by Ohio taxable income. The tax imposed by this section on the balance thus obtained is hereby levied as follows: 

(1) For taxable years beginning in 2004:       
 
OHIO ADJUSTED GROSS
INCOME LESS
EXEMPTIONS
(INDIVIDUALS) OR
MODIFIED OHIO
TAXABLE INCOME
(TRUSTS) OR OHIO
TAXABLE INCOME
(ESTATES)              TAX
$5,000 or less         .743%
More than $5,000
but not more than
$10,000                $37.15 plus 1.486%
                       of the amount in
                       excess of $5,000
More than $10,000
but not more than
$15,000                $111.45 plus 2.972%
                       of the amount in
                       excess of $10,000
More than $15,000
but not more than
$20,000                $260.05 plus 3.715%
                       of the amount in
                       excess of $15,000
More than $20,000
but not more than
$40,000                $445.80 plus 4.457%
                       of the amount in
                       excess of $20,000
More than $40,000
but not more than
$80,000                $1,337.20 plus
                       5.201% of the amount
                       in excess of $40,000
More than $80,000
but not more than
$100,000               $3,417.60 plus
                       5.943% of the amount
                       in excess of $80,000
More than $100,000
but not more than
$200,000               $4,606.20 plus 6.9%
                       of the amount in
                       excess of $100,000
More than $200,000     $11,506.20 plus 7.5%
                       of the amount in
                       excess of $200,000
 

(2) For taxable years beginning in 2005:       
 
OHIO ADJUSTED GROSS
INCOME LESS
EXEMPTIONS
(INDIVIDUALS) OR
MODIFIED OHIO
TAXABLE INCOME
(TRUSTS) OR OHIO
TAXABLE INCOME
(ESTATES)              TAX
$5,000 or less         .712%
More than $5,000
but not more than
$10,000                $35.60 plus 1.424%
                       of the amount in
                       excess of $5,000
More than $10,000
but not more than
$15,000                $106.80 plus 2.847%
                       of the amount in
                       excess of $10,000
More than $15,000
but not more than
$20,000                $249.15 plus 3.559%
                       of the amount in
                       excess of $15,000
More than $20,000
but not more than
$40,000                $427.10 plus 4.27%
                       of the amount in
                       excess of $20,000
More than $40,000
but not more than
$80,000                $1,281.10 plus
                       4.983% of the amount
                       in excess of $40,000
More than $80,000
but not more than
$100,000               $3,274.30 plus
                       5.693% of the amount
                       in excess of $80,000
More than $100,000
but not more than
$200,000               $4,412.90 plus 6.61%
                       of the amount in
                       excess of $100,000
More than $200,000     $11,022.90 plus
                       7.185% of the amount
                       in excess of $200,000
 

(3) For taxable years beginning in 2006:       
 
OHIO ADJUSTED GROSS
INCOME LESS
EXEMPTIONS
(INDIVIDUALS) OR
MODIFIED OHIO
TAXABLE INCOME
(TRUSTS) OR OHIO
TAXABLE INCOME
(ESTATES)              TAX
$5,000 or less         .681%
More than $5,000
but not more than
$10,000                $34.05 plus 1.361%
                       of the amount in
                       excess of $5,000
More than $10,000
but not more than
$15,000                $102.10 plus 2.722%
                       of the amount in
                       excess of $10,000
More than $15,000
but not more than
$20,000                $238.20 plus 3.403%
                       of the amount in
                       excess of $15,000
More than $20,000
but not more than
$40,000                $408.35 plus 4.083%
                       of the amount in
                       excess of $20,000
More than $40,000
but not more than
$80,000                $1,224.95 plus
                       4.764% of the amount
                       in excess of $40,000
More than $80,000
but not more than
$100,000               $3,130.55 plus
                       5.444% of the amount
                       in excess of $80,000
More than $100,000
but not more than
$200,000               $4,219.35 plus 6.32%
                       of the amount in
                       excess of $100,000
More than $200,000     $10,539.35 plus
                       6.87% of the amount
                       in excess of $200,000
 

(4) For taxable years beginning in 2007:       
 
OHIO ADJUSTED GROSS
INCOME LESS
EXEMPTIONS
(INDIVIDUALS) OR
MODIFIED OHIO
TAXABLE INCOME
(TRUSTS) OR OHIO
TAXABLE INCOME
(ESTATES)              TAX
$5,000 or less         .649%
More than $5,000
but not more than
$10,000                $32.45 plus 1.299%
                       of the amount in
                       excess of $5,000
More than $10,000
but not more than
$15,000                $97.40 plus 2.598%
                       of the amount in
                       excess of $10,000
More than $15,000
but not more than
$20,000                $227.30 plus 3.247%
                       of the amount in
                       excess of $15,000
More than $20,000
but not more than
$40,000                $389.65 plus 3.895%
                       of the amount in
                       excess of $20,000
More than $40,000
but not more than
$80,000                $1,168.65 plus
                       4.546% of the amount
                       in excess of $40,000
More than $80,000
but not more than
$100,000               $2,987.05 plus
                       5.194% of the amount
                       in excess of $80,000
More than $100,000
but not more than
$200,000               $4,025.85 plus
                       6.031% of the amount
                       in excess of $100,000
More than $200,000     $10,056.85 plus
                       6.555% of the amount
                       in excess of $200,000
 

(5) For taxable years beginning in 2008:       
 
OHIO ADJUSTED GROSS
INCOME LESS
EXEMPTIONS
(INDIVIDUALS) OR
MODIFIED OHIO
TAXABLE INCOME
(TRUSTS) OR OHIO
TAXABLE INCOME
(ESTATES)              TAX
$5,000 or less         .618%
More than $5,000
but not more than
$10,000                $30.90 plus 1.236%
                       of the amount in
                       excess of $5,000
More than $10,000
but not more than
$15,000                $92.70 plus 2.473%
                       of the amount in
                       excess of $10,000
More than $15,000
but not more than
$20,000                $216.35 plus 3.091%
                       of the amount in
                       excess of $15,000
More than $20,000
but not more than
$40,000                $370.90 plus 3.708%
                       of the amount in
                       excess of $20,000
More than $40,000
but not more than
$80,000                $1,112.50 plus
                       4.327% of the amount
                       in excess of $40,000
More than $80,000
but not more than
$100,000               $2,843.30 plus
                       4.945% of the amount
                       in excess of $80,000
More than $100,000
but not more than
$200,000               $3,832.30 plus
                       5.741% of the amount
                       in excess of $100,000
More than $200,000     $9,573.30 plus 6.24%
                       of the amount in
                       excess of $200,000
 

(6) For taxable years beginning in 2009 or thereafter:       
 
OHIO ADJUSTED GROSS
INCOME LESS
EXEMPTIONS
(INDIVIDUALS) OR
MODIFIED OHIO
TAXABLE INCOME
(TRUSTS) OR OHIO
TAXABLE INCOME
(ESTATES)              TAX
$5,000 or less         .587%
More than $5,000
but not more than
$10,000                $29.35 plus 1.174%
                       of the amount in
                       excess of $5,000
More than $10,000
but not more than
$15,000                $88.05 plus 2.348%
                       of the amount in
                       excess of $10,000
More than $15,000
but not more than
$20,000                $205.45 plus 2.935%
                       of the amount in
                       excess of $15,000
More than $20,000
but not more than
$40,000                $352.20 plus 3.521%
                       of the amount in
                       excess of $20,000
More than $40,000
but not more than
$80,000                $1,056.40 plus
                       4.109% of the amount
                       in excess of $40,000
More than $80,000
but not more than
$100,000               $2,700.00 plus
                       4.695% of the amount
                       in excess of $80,000
More than $100,000
but not more than
$200,000               $3,639.00 plus
                       5.451% of the amount
                       in excess of $100,000
More than $200,000     $9,090.00 plus
                       5.925% of the amount
                       in excess of $200,000
 

In July of each year, beginning in 2010, the tax commissioner shall adjust the income amounts prescribed in this division by multiplying the percentage increase in the gross domestic product deflator computed that year under section 5747.025 [5747.02.5] of the Revised Code by each of the income amounts resulting from the adjustment under this division in the preceding year, adding the resulting product to the corresponding income amount resulting from the adjustment in the preceding year, and rounding the resulting sum to the nearest multiple of fifty dollars. The tax commissioner also shall recompute each of the tax dollar amounts to the extent necessary to reflect the adjustment of the income amounts. The rates of taxation shall not be adjusted. 

The adjusted amounts apply to taxable years beginning in the calendar year in which the adjustments are made. The tax commissioner shall not make such adjustments in any year in which the amount resulting from the adjustment would be less than the amount resulting from the adjustment in the preceding year. 

(B)  If the director of budget and management makes a certification to the tax commissioner under division (B) of section 131.44 of the Revised Code, the amount of tax as determined under division (A) of this section shall be reduced by the percentage prescribed in that certification for taxable years beginning in the calendar year in which that certification is made. 

(C)  The levy of this tax on income does not prevent a municipal corporation, a joint economic development zone created under section 715.691 [715.69.1], or a joint economic development district created under section 715.70 or 715.71 or sections 715.72 to 715.81 of the Revised Code from levying a tax on income. 

(D)  This division applies only to taxable years of a trust beginning in 2002 or thereafter. 

(1) The tax imposed by this section on a trust shall be computed by multiplying the Ohio modified taxable income of the trust by the rates prescribed by division (A) of this section. 

(2) A credit is allowed against the tax computed under division (D) of this section equal to the lesser of (1) the tax paid to another state or the District of Columbia on the trust's modified nonbusiness income, other than the portion of the trust's nonbusiness income that is qualifying investment income as defined in section 5747.012 [5747.01.2] of the Revised Code, or (2) the effective tax rate, based on modified Ohio taxable income, multiplied by the trust's modified nonbusiness income other than the portion of trust's nonbusiness income that is qualifying investment income. The credit applies before any other applicable credits. 

(3) The credits enumerated in divisions (A)(1) to (13) of section 5747.98 of the Revised Code do not apply to a trust subject to this division. Any credits enumerated in other divisions of section 5747.98 of the Revised Code apply to a trust subject to this division. To the extent that the trust distributes income for the taxable year for which a credit is available to the trust, the credit shall be shared by the trust and its beneficiaries. The tax commissioner and the trust shall be guided by applicable regulations of the United States treasury regarding the sharing of credits. 

(E)  For the purposes of this section, "trust" means any trust described in Subchapter J of Chapter 1 of the Internal Revenue Code, excluding trusts that are not irrevocable as defined in division (I)(3)(b) of section 5747.01 of the Revised Code and that have no modified Ohio taxable income for the taxable year, charitable remainder trusts, qualified funeral trusts and preneed funeral contract trusts established pursuant to section 1111.19 of the Revised Code that are not qualified funeral trusts, endowment and perpetual care trusts, qualified settlement trusts and funds, designated settlement trusts and funds, and trusts exempted from taxation under section 501(a) of the Internal Revenue Code. 
 

HISTORY: 134 v H 475 (Eff 12-20-71); 135 v H 95 (Eff 7-20-73); 135 v H 1013 (Eff 6-13-74); 135 v H 1476 (Eff 1-1-75); 139 v S 530 (Eff 6-25-82): 140 v H 100 (Eff 2-24-83); 140 v H 291 (Eff 1-1-84); 141 v H 238 (Eff 7-1-85); 141 v S 417 (Eff 3-13-87); 142 v H 708 (Eff 4-19-88); 143 v H 111 (Eff 7-1-89); 143 v H 174 (Eff 4-10-91); 144 v H 904 (Eff 12-22-92); 145 v H 715 (Eff 7-22-94); 146 v H 117 (Eff 9-29-95); 146 v H 269 (Eff 11-15-95); 146 v S 310, § 1 (Eff 7-1-96); 146 v H 442 (Eff 7-9-96); 147 v H 215 (Eff 9-29-97); 149 v S 261 (Eff 6-5-2002); 149 v H 675. Eff 12-13-2002; 150 v H 95, § 1, eff. 6-26-03; 151 v H 66, § 101.01, eff. 6-30-05.
 

The provisions of § 557.30 of 151 v H 66 read as follows: 

SECTION 557.30. Except as otherwise provided in division (A) (18) of section 5747.01 and division (A) of section 5747.02 of the Revised Code, the amendment by this act of sections 5747.01 and 5747.02 of the Revised Code applies to taxable years ending on or after the effective date of this section. 

The effective date is set by § 612.21 of 151 v H 66. 

The provisions of § 163, H.B. 95 (150 v  - ), read as follows: 

SECTION 164. The amendment by this act of section 5747.02 of the Revised Code applies to taxable years ending on or after the effective date of this section. 

The effective date is set by section 183 of H.B. 95 (150 v  - ). 

See provisions, § 34.01 of HB 675 (149 v  - ) following RC § 5747.01. 

 

Effect of Amendments

151 v H 66, effective June 30, 2005, inserted the six subdivision introductions beginning "For taxable years" in (A) and the tables following (A)(2) through (6); in the second to last paragraph of (A), substituted "2010" for "2005"; and, in the introductory language of (D), substituted "2002 or thereafter" for "2002, 2003, or 2004".