OSCPA’s Director of Tax Policy, Greg Saul, Esq., CAE, will offer proponent testimony on House Bill 515 in the House Ways and Means Committee on Tuesday, May 31.
“H.B. 515 clarifies that gains from the sale of an ownership interest in a business is considered ‘business income’ for Ohio income tax purposes,” Saul said.
He said the sale must satisfy either of the following: (1) the sale is treated for federal income tax purposes as the sale of assets; or, (2) the seller was involved in the day-to-day management of the business during the taxable year in which the sale occurred or during any of the five preceding years.
H.B. 515 is a remedial measure intended to clarify existing law. It also applies to any petition for reassessment or any appeal thereof; to any application for refund or any appeal thereof pending on or after the effective date; and to any transaction that is subject to an ODT audit on or after the effective date.
Tom Zaino, CPA, JD, managing member of Zaino Hall & Farrin testified on behalf of OSCPA for H.B. 515 in February. The House unanimously voted 91-0 and passed House Bill 515 in March. OSCPA has already testified in favor of H.B. 515’s companion legislation Senate Bill 247, which had three hearings in 2021.