Senate budget proposal includes centralized collection option

Written on Jun 15, 2017

OSCPA staff report

The newest version of House Bill 49 would give businesses the long-sought option to simplify their filing of net profits taxes through use of the Ohio Business Gateway.

Sub. H.B. 49 was accepted by the Senate Finance Committee without objection Monday afternoon. Additional Senate revisions to the over 3,000-page legislation are expected in the coming days. The biennial budget bill is scheduled to be on the Senate floor on June 21, with a House/Senate conference committee to be named soon thereafter as a June 30 deadline approaches.

This week’s move was a welcome development, as OSCPA has advocated centralized collection of municipal net profits taxes as a meaningful way to improve the state’s business regulatory climate. Last month OSCPA member Lee Beall, CPA, told a Senate committee that the compromise would allow businesses to file on a single form via commercial software they already use and pay all cities in a single transaction. The Ohio Department of Taxation would administer the municipal net profits tax for those businesses who ‘opt in.’

“Having this OBG/ODT ‘opt in’ will provide meaningful relief to the 13% of businesses (who file in four or more municipalities), many of which file in dozens – even hundreds – of cities,” Beall said.

Remember: lawmakers need to hear from CPAs on the need to support the Senate’s recent language for optional centralized collection of net profits tax. You can easily help make a meaningful impact by leaving a phone message with your state senator or sending a letter or email. OSCPA’s government relations team can help you do that.

OSCPA testified again last week supporting the Senate changes to the centralized collection proposal.

 

2 comments

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  1. John Michel | Jun 16, 2017
    Why not allow individuals to opt in as well?  Some individual filers have multi-jurisdictional filing requirements (i.e. sole proprietors, landlords, etc.).  I also agree with the comment on merging of the Ohio School District Income Tax Return and the Ohio Income Tax Return. 
  2. Small CPA | Jun 16, 2017

    For a proposal to work, how come the Ohio Department of Taxation has not merged the SDIT with the IT-10410?  Is there a problem with the process? 

    This issue affects more taxpayers than the business taxpayers.  Many times there is a tax due on one return and a refund due on the other.  It would make the individual taxpayers happy.

    This would be a good way to determine if some of the procedures the OSCPA advocates can be handled by the ODT.  From many of us, we still have to take a wait and see attitude.

     

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