Dec. 15 muni tax payment deadline approaching

OSCPA staff report

Practitioners might not have noticed that the approaching due date for municipal 4th quarter estimated tax payments is nearly seven weeks earlier this year – Dec. 15.

The change was a provision of House Bill 5, Ohio’s municipal income tax reform bill. That provision requires every taxpayer with an annual tax liability of $200 or more – withholding excepted – to report and pay estimated taxes by the 15th day of the fourth, sixth, ninth and 12th months of a taxable year.  The change was included in HB 5 at the urging of representatives of several Ohio cities, who feared losses from the soon-to-be-implemented five-year Net Operating Loss requirement set to take effect Jan. 1, 2017.

For calendar year taxpayers, those dates are April 15, June 15, Sept. 15 and – in the only change that differs from the state’s deadline – Dec. 15. (See chart below.)

As before, the payments cities may require may not exceed 22.5%, 45%, 67.5%, and 90%, respectively, of individual taxpayers’ estimated annual liability.

Individuals’ Estimated Quarterly Payments

State Deadline

ORC 5747.43

Municipal Deadline

ORC 718.08

Municipal Deadline under Prior Law

1st Quarter (22.5%)

April 15

April 15

April 30

2nd Quarter (45%)

June 15

June 15

July 31

3rd Quarter (67.5%)

Sept. 15

Sept. 15

Oct. 31

4th Quarter (90%)

Jan. 15

Dec. 15

Jan. 31

1 comment

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  1. V Puthoff | Oct 24, 2016

    This accelerated date is going to cause penalties with the usual nasty cities who ding taxpayers for every dot and "I".  Understand the political reasons for these compromises but I am all for standing firm and especially would like to see the regionalization of income tax collection, something that would save the cities tax dollars and make tax preparation more seamless.

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