By Jessica Salerno, OSCPA senior content manager
House Bill 126 - The bill creates a process where school boards must discuss and disclose that their intent is to challenge property values and then vote on the issue at a meeting. Before that happens, the bill would also require school boards to issue a notice by certified mail to the owners impacted so they are aware of the upcoming meeting. This bill is now in the Senate.
House Bill 228 – This legislation makes several positive changes to the Ohio Department of Taxation administered centralized collection process for the municipal net profits tax. H.B. 228 passed 91-1 on the House floor on May 26 and has had three hearings in the Senate Ways & Means Committee to date.
Senate Bill 246 – This would allow passive entities to choose to be taxed at the entity level instead of the income tax on the individual owners, meaning they'll receive the federal deduction that should not impact Ohio's revenue.
“What makes it a little complicated in Ohio is the existence of the business income deduction, because folks will still want to get the benefit of up to $250,000 exemption on the business income side,” Zaino said. “So those owners will still want to file individual returns.”
Senate Bill 247 – Resident shareholders and owners of passive entities are exempt from income tax certain gains from the sale of an ownership interest in a business.
“The Department of Tax has been treating the sale of a business that's deemed to be an asset sale for federal tax purposes as not being an asset sale,” Zaino said. “And so it makes the resident shareholders, owners of those passive entities have to pay full tax rates as opposed to the tax rate for business income deduction purposes. And so this would retroactively fix that problem for any pending open years.”
Learn about these pending issues and more as Tom Zaino and OSCPA VP of government relations Barb Benton pair up to provide a meaty legislative update on hot issues of interest to CPAs.