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OSCPA secures movement on BID, muni tax bills

Written on Mar 25, 2022

OSCPA staff report

On the heels of the Ohio Senate’s passage of Senate Bill 246 (SALT cap parity) last week, OSCPA achieved movement on March 22 in the Ohio House Ways & Means Committee on priority bills covering municipal income tax and the business income deduction (BID).

Committee members present unanimously voted 16-0 and passed House Bill 515, which seeks to clarify that gains resulting from the sale of an ownership interest in a business is considered business income for Ohio’s BID. OSCPA is also pushing to get the companion legislation, Senate Bill 247, to move out of the Senate Ways & Means Committee. The Society has testified as a proponent of both bills.

House Bill 519, which seeks to make changes to the administration and enforcement of municipal income taxes, has also been reported out of the committee on a 13-3 vote. Before passage, committee members accepted an amendment from bill sponsor Rep. Bill Roemer, CPA. The amendment (1) limits the late filing penalty to $25, rather than the bill's previous cap at 50% of tax liability or the $150 cap in current law; (2) requires any late filing penalty assessed on a taxpayer’s first late filing to be refunded or abated once the taxpayer files the overdue return.

Society Tax Policy Director Greg Saul, Esq., CAE, testified in favor of H.B. 519 in February.

Next stop for both H.B. 515 and H.B. 519 are votes on the House floor, and then they will head to the Senate for further hearings.