✔️ HB209
Exempt tips from state, municipal, school district income taxes
Current Status: In House Committee (Ways and Means)
Summary
HB209 amends sections 718.01, 5747.01, and 5748.01 of the Revised Code to exempt tips from state, municipal, and school district income taxes. This change applies to all individuals and businesses that receive tips, effectively removing these earnings from taxable income calculations. The amendment is applicable to taxable years ending on or after the effective date of the legislation.
Rationale
The bill aligns with Libertarian principles of reducing taxation and promoting individual financial freedom by exempting tips from income taxes. This supports the Libertarian Party's advocacy for minimal government interference in personal finances and aligns with the Libertarian Party of Ohio's stance against state income tax.
Risks and Concerns
- Potential loss of revenue for local governments
- May lead to increased reliance on other forms of taxation