Municipal Tax Reform

House Bill 5 becomes law!

Ohio’s municipal income tax system has long been an area of frustration and burden for Ohio's business community. OSCPA’s top legislative priority for years has been achieving meaningful, common sense reforms. House Bill 5 helped make that goal a reality.

HB_5_Signing
Gov. Kasich signs House Bill 5 into law on Dec. 19, 2014 surrounded by OSCPA staff and other supporters.
 

The passage of House Bill 5 is a great example of CPA leadership in action and demonstrates the power of what a strong and unified voice for the profession can do. Thank you for your support, steadfastness and staying the course during the past four years.  

OSCPA prepared a summary of the key provisions as a benefit to members and the business community. 

We also deeply appreciate the legislators who supported the interests of CPAs and the Ohio business community – especially Reps. Cheryl Grossman, R-Grove City, and Mike Henne, R-Clayton and Sen. Bob Peterson, R-Sabina. They devoted countless hours to crafting a bill that significantly improves Ohio’s municipal tax system yet also considers the needs of our communities.  

To help drive this change, OSCPA organized the Municipal Tax Reform Coalition, a partnership of 33 organizations in Ohio driving reform of Ohio’s municipal income tax code. Together, they represent a large share of the business and individual taxpayers who are the lifeblood of Ohio’s economy and are impacted most by the current structure.

OSCPA has testified repeatedly that the Ohio municipal tax system is overly burdensome for taxpayers, and that change is sorely needed. 

Gov. Kasich signed the bill into law on Dec. 19, 2014. The effective date for most provisions is Jan. 1, 2016. 

Contact the Governmental Affairs team for more information on this and other legislative priorities:

 

   

Latest news on municipal income tax reform:

  • Feb 28, 2014

    Testimony resumes on muni tax bill

    Proponents of Substitute House Bill 5 told Ohio House Ways & Means Committee members on Tuesday that the bill has a chance to dramatically help business in Ohio by improving its dysfunctional municipal income tax system.
  • Feb 28, 2014

    Opponents of muni tax bill have their say at the Statehouse

    Opponents of House Bill 5 expressed concerns to legislators about preserving local control and revenue, even as they are hopeful a compromise can be reached on the legislation.
  • Feb 28, 2014

    Municipal income tax reform – The stakes have never been higher

    Since 1946 when Ohio authorized cities and villages to assess and collect income taxes, local governments across Ohio have relied on this tax as the major revenue source for their general funds.

Learn how the changes impact you

OSCPA's On-Demand course Municipal Tax Update: Am. Sub. HB 5 covers key provisions of the new law, including:

  • NOL carryovers
  • The 20 Day Occasional Entrant Rule
  • Changes impacting compliance.

Register now
 

HB 5 Summary Details

OSCPA prepared a summary of the key provisions as a benefit to members and the business community.