Governor Bob Taft signed H.B. 66, the biennial state budget bill for fiscal years 2006-2007, into law on June 30, 2005. The bill established a 45-day amnesty program that will run from January 1, 2006 through February 15, 2006 and made a number of significant changes to Ohio’s tax code. These changes affect most Ohio business and Ohio income taxpayers. These changes apply to several taxes including: corporate income tax, personal income tax, sales and use tax, property tax, and cigarette tax. Additionally, H.B. 66 imposed the commercial activity tax (CAT) that replaced the corporation franchise (income) tax. The corporation franchise tax will be phased out over a five-year period beginning in taxable year 2006, while the CAT will be phased in over the same period. The personal income tax rate is reduced by 4.2% each year for 5 years, and the tangible personal property tax on most business inventory, manufacturing machinery and equipment, and furniture and fixtures is phased out over four years. The budget also calls