By Greg Saul, Esq., CAE, director of tax policy
The Ohio Senate Ways & Means Committee held its first hearing of the 135th General Assembly on Tuesday, Jan. 17, and the only bill on the agenda was Senate Bill 10 – the annual federal/state tax conformity legislation.
Chair Bill Blessing (R-Cincinnati) gave sponsor testimony on the bill, which he said incorporates into Ohio law recent changes to the Internal Revenue Code (IRC) that took effect after Feb. 17, 2022, when H.B. 51 (134th GA) brought Ohio into conformity with federal law and its applicability to Ohio’s income taxes.
The two federal acts requiring the update to Ohio’s code are H.R. 5376—the Inflation Reduction Act from August 2022, and H.R. 2617—the Consolidated Appropriations Act from December 2022. Click here to read the most significant changes affecting Ohio law.
Sen. Blessing said the Ohio Department of Taxation is reviewing the acts and their changes so there may be additional information as it goes through the process. He added there is an emergency clause with S.B. 10 so it can take effect immediately upon the Governor’s signature – instead of the normal 90-day waiting period.
Sen. Kent Smith (D-Euclid) asked about the deadline for the bill’s enactment. Sen. Blessing said it needs to get done as quickly as possible because some Ohioans are already filing their taxes, adding he hopes to get it to the Senate floor by Wednesday, Feb. 8.
The Ohio Society of CPAs intends to testify in support of S.B. 10 at the next hearing when the committee accepts proponent testimony. After S.B. 10 clears the Ohio Senate, it will need to head to the Ohio House for hearings.