Ohio Ways and Means Committee reports Senate Bill 9 after tabling decoupling amendment

Chairman Romer opened the committee’s third hearing on Senate Bill 9, which would incorporate recent Internal Revenue Code changes into Ohio law. No in-person public testimony was offered; the committee had technical staff available from the Ohio Society of CPAs and the Department of Tax.

An amendment originating from the Department of Tax (amendment 136_1715) that codifies the definition of a dependent was offered and accepted unanimously as de minimis. Ranking Member Troy then moved to amend the amendment (identified in discussion as 1361692) to decouple certain federal provisions from state conformity, specifically criticizing an expansion of the capital gains exclusion for so-called "qualified small business stock" as a giveaway that would largely benefit high-income households. Troy argued decoupling could save the state about $22 million over the next decade and said many qualified exclusions flow to households with incomes over $1 million.

Chairman Romer cautioned that decoupling imposes compliance costs on taxpayers and on the Department of Tax, and he cited Department of Tax projections that the provision is net accretive in the near term (about $200,000 across fiscal years 2026–27). After discussion, a motion was made to lay Troy’s amendment on the table. The committee conducted a roll-call vote and the chair announced the amendment was laid on the table.

Vice Chair Thomas then moved to favorably report Senate Bill 9 and recommend its passage. The clerk called the roll and the chair announced the committee approved the bill (announced as "by a vote of 12 to 1"), directing LSC to harmonize and engross accepted amendments and substitute bills.

The committee’s action leaves Senate Bill 9 reported out of committee for further consideration by the full House.