ODT Virtual Tax Academy provides treasure trove of information ahead of tax season

By Greg Saul, Esq., CAE, director of tax policy  

The Ohio Department of Taxation (ODT) held its annual Virtual Tax Academy (VTA) on Nov. 17 and provided three different sessions.  A recording of the event will be made available on Nov. 30, but members can currently download all three of the presentations either in PowerPoint or PDF format.  

The first session covered Individual Income and School District Income Tax Updates.  OSCPA-supported House Bill 515, specifying when sales of businesses are eligible for the business income deduction (BID), was highlighted in this session on slides 7-14.  H.B. 515 became law on Sept. 23, and it is a remedial measure clarifying existing law so it can be applied to current audits and amended returns. 

Next, the second session discussed Pass-Through Entity Tax Updates.  OSCPA-supported Senate Bill 246, also known as the SALT cap deduction parity, was the topic on slides 5-13 and on slides 21-23 of the first session.  S.B. 246 became law on Sept. 13, and ODT continues to release guidance on implementing the new law (Form IT 4738), including 20 FAQs.   

The second session also emphasized OSCPA-supported Senate Bill 18, which lowers Ohio’s withholding rates on nonresident investors in Ohio-operating PTEs. The effective date of the withholding rate change to 3% applies to PTE’s taxable years beginning on or after Jan. 1, 2023. Current law requires these entities to withhold on behalf of nonresident individuals at 5% and other PTEs (nonindividuals) at 8.5%.  

Finally, the third session included Construction Contracts & Sales Exemptions on Motor Vehicles in Ohio. This session provided a high-level look at how Ohio’s sales tax intersects with construction contracts (including the classification of property) and sales tax exemptions for motor vehicles.  

Did you miss out on these presentations?  Members can hear from ODT speakers and more topics by registering for our MEGA Tax Conference being held virtually on Dec. 13-14.