Not-your-typical-budget brings needed reform

By Gary Hunt, senior content editor

The passage of Ohio’s budget is usually a noteworthy – if somewhat routine – development for the state’s business community. The budget of 2017, however, will likely prove to be more memorable for CPAs who saw some long-sought reforms finally come to pass.

“OSCPA’s Tax Reform Task Force issued a report to the state in 2016, and we were very pleased that the Kasich Administration included several recommendations from the report in the budget bill that ultimately became law,” said Barb Benton, CAE OSCPA’s vice president of government relations.

The cornerstone – which we have covered at length – is a new option allowing Ohio businesses to file net profit tax returns on one form through the Ohio Business Gateway starting Jan. 1. But there are several other important changes, as well. Benton and Greg Saul, Esq., CAE, director of tax policy, joined us on the latest episode of OSCPA Spotlight for a comprehensive breakdown.

Key provisions of the bill include:

  • Elimination of the municipal throwback rule
  • Cutting the number of Ohio’s income tax brackets from 9 to 7
  • Retention of the business income deduction
  • No tax on professional services
  • No increase in the Commercial Activity Tax rate for Ohio businesses

Adding to the challenge for legislators, Benton said, is the fact that state revenues came in under budget.

“From January through the time they signed the bill into law at the end of June, (the shortfall) actually grew to about $1.1 billion,” Benton said.” So, they had to make up for that loss and changes they made had to be fairly revenue neutral or balance out with other changes.”

Watch the discussion now in the episode above, and contact OSCPA’s government relations team if you have questions or would like to learn how you can help advance the state of business in Ohio.

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  1. Howard Griffith | Jul 20, 2017
    Watch it will end up in the same condition as, I believe, either Nebraska did when they cut taxes for the wealthy and businesses.

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