Modify regulation of medical marijuana, adult use cannabis, hemp

SB 278 modifies how Ohio taxes medical marijuana, adult-use cannabis, and hemp by updating definitions and rules for municipal taxable income. The bill clarifies how various types of income, such as wages, business profits, and lottery winnings, are calculated for both residents and nonresidents. It also adjusts how net operating losses can be used to reduce taxes and specifies which income sources, like military pay and Social Security benefits, remain exempt from local taxation. These changes aim to align state tax regulations with federal income tax standards and update existing municipal tax structures.