This week, the Ohio Senate’s Ways & Means Committee began hearings on Senate Bill 216, a proposal to phase out state income tax on nonbusiness income over six years and repeal the Commercial Activity Tax (CAT) by 2030.

The bill’s sponsor, Sen. Steve Huffman, acknowledged the state would need to replace approximately $8 billion in annual revenue, potentially through spending reductions or revised sales tax policies, while protecting essential items like food and rent from sales tax. Advocates argue the measure will spur economic growth and attract residents to Ohio, but critics, like Sen. Kent Smith, raised concerns about impacts on property taxes and overall revenue sustainability. 11/20/2024