Governor, others call for action as budget discussions drag on

Ohio Gov. Mike DeWine last week urged House and Senate leaders to settle differences over tax breaks for small businesses in a separate bill rather than to further delay Ohio’s biennial budget bill.

Legislators, who passed an interim operating budget when it became clear they could not otherwise finish work on Am. Sub. H.B. 166 by the start of the fiscal year on July 1, gave themselves until July 17 to pass a budget.

Negotiations between the House and Senate are ongoing on the major areas yet to be agreed upon, including school funding, healthcare issues and tax changes, including Ohio’s Business Income Deduction (BID) and the amount of the across-the-board income tax rate reduction. 

OSCPA continues to actively advocate to keep the BID level at $250,000 and to ensure that any changes don’t take effect until 2020. To reinforce that message, OSCPA has been collaboratively working with numerous major business organizations and jointly sent a letter to all legislators. The House version of the bill reduced the BID to $100,000 and made the change retroactive to Jan. 1, 2019. Both the House and Senate voted to eliminate the 3% flat rate on income more than $250,000, so it is unlikely to return at that level in the final bill. Other tax changes include across-the-board income tax reductions (6.6% by the House, 8% by the Senate) and elimination of the bottom two tax brackets, reducing the total to five brackets.

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