Senate approves needed pass-through entity tax reform

OSCPA staff report

The Ohio Senate on Wednesday voted 30-0 to approve a bill to simplify the complex process and streamline the calculation, remittance and tracking of tax paid on behalf of nonresident owners of Ohio-operating pass-through entities.

Sub. Senate Bill 288, which was sponsored by State Sen. John Eklund, R-Munson Township, would establish one tax form, one tax rate and one return date for PTEs.

Earlier on Wednesday, the Senate Ways and Means Committee passed the bill out on a unanimous vote of members present after accepting two amendments from Eklund. He said one makes small technical changes discovered by the Legislative Service Commission, while the other allows publicly traded pass-through entities to submit the K1 form they file with the federal government as an alternative to reporting each individual owner. Such ownership changes daily because shares are publicly traded.

The bill will now be referred to a House committee for further hearings.