OSCPA Government Relations Roundup

The following is a summary of this past week’s noteworthy events from your OSCPA government relations team.  

Income tax, CAT repeal has first House hearing 

State Rep. Adam Mathews (R-Lebanon) on April 9 gave sponsor testimony to the House Ways & Means Committee on his legislation that he said would "once-and-for-all eliminate Ohio's state income tax and Commercial Activity Tax (CAT) by 2030.” 

Mathews said H.B. 386 would establish a six-year gradual phase-down of the state income tax (only on non-business income) through the remainder of the decade. A similar bill, S.B. 216, has also been introduced in the Ohio Senate.  

Click here for an analysis of H.B. 386. Click here for prior OSCPA coverage of both bills.  

State of the State Address 

Governor DeWine on April 10 delivered his 2024 State of the State address before a joint session of the Ohio Senate and the Ohio House.  

This year’s State of the State speech centered around education, health care, and children – including childcare initiatives. Click here to read the Governor’s remarks as prepared. 

ODT reminds CAT returns due 

The Ohio Department of Taxation this week reminded all commercial activity tax (CAT) practitioners and taxpayers that the first quarter 2024 CAT return is due May 10, 2024.  The 2023 CAT 12 annual return is also due on May 10, 2024, for all CAT annual taxpayers. 

All CAT annual taxpayers are reminded that May 10 will be the final annual filing. As a result of OSCPA supported changes in H.B. 33, the annual filing and annual minimum tax (AMT) have been eliminated as of Jan. 1, 2024. If a taxpayer anticipates having $3 million or less in taxable gross receipts in tax year 2024, ODT recommends that you cancel your CAT account. You may do so by using the cancelation check box on the 2023 annual tax return. Click here for more information. 

IRS transcripts 

On April 8, the IRS announced that tax professionals now must call the Practitioner Priority Service (PPS) to request transcripts to be deposited into their Secure Object Repository (SOR). While PPS has been the primary avenue for these requests, other IRS toll-free lines will no longer offer the SOR as a delivery method. 

The IRS stated these changes are part of the IRS’ effort to continue combatting identity theft and protecting taxpayers’ personal information. This Accounting Today article has more information.