Budget bill Senate-bound after House OKs OSCPA-supported provisions

Written on May 04, 2017

OSCPA staff report

Ohio’s biennial budget bill continued its journey toward Gov. Kasich’s desk this week after legislators in the House voted it to the Senate with changes supported by OSCPA.

Most notably, lawmakers removed a provision in Substitute House Bill 49 that would have charged taxpayers a 1% fee for filing single municipal net profits returns through the Ohio Business Gateway on which businesses would report tax liabilities to multiple municipalities. As we explained last week, this troublesome provision found its way into the bill as it approached a vote in the House Finance Committee.

Other changes recommended by OSCPA that were included in the House-passed bill were:

  • Creating the DataOhio initiative to increase transparency in government.
  • Combining tax forms for sales and use tax
  • Reduces the number of personal income tax brackets from nine to seven. (The lowest two were eliminated.)
  • Specifies that sales of automatic data processing, computer services, EIS and electronic publishing are not table under the sales tax when they are provided primarily for the delivery, receipt or use of another nontaxable service.
  • Changes the penalty for a late municipal withholding payment to “not to exceed 50%” of the unpaid amount vs. 50%.

HB49 passed 58-37, with four democrats joining most Republicans in support of the budget and 11 Republicans joining most Democrats in voting against the legislation. A final budget bill must be passed by the full Legislature by the end of June, and Gov. Kasich has the authority to line-item veto items he doesn’t support.

OSCPA will be working with members of the Ohio Senate in the coming weeks to strengthen the House-passed language for optional centralized collection of net profits tax. For the huge percentage of OSCPA members who, for years, have clamored for centralized collection of municipal taxes: you need to speak up NOW! Doing so is as easy as leaving a phone message with your state senator or sending a letter or email, and will have a meaningful impact. Need help? OSCPA’s government relations team is standing by to help.

2 comments

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  1. Greg Saul | May 05, 2017

    Jim, you are correct.  The mandate has been removed, but there's been recent discussions to allow an "opt-in" approach for businesses. See our testimony discussing "an alternative proposal."

  2. Jim Burns | May 04, 2017

    Wasn't the mandate that all net profit returns be filed through the Ohio Business gateway dropped?

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