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Ohio House passes BID, muni tax bills

Written on Apr 1, 2022

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

The Ohio House on March 30 favorably passed back-to-back OSCPA priority bills covering municipal income tax and the business income deduction (BID). 

First, the House unanimously voted 91-0 and passed House Bill 515, which seeks to clarify that gains resulting from the sale of an ownership interest in a business is considered business income for Ohio’s BID. The companion legislation, Senate Bill 247, has already had three hearings in the Senate Ways & Means Committee. The Society has testified as a proponent of both bills. 

The House then took up House Bill 519, which seeks to make changes to the administration and enforcement of municipal income taxes, and it passed on a 61-29 vote. H.B. 519 had been previously amended in committee by bill sponsor Rep. Bill Roemer, CPA. The amendment (1) limits the late filing penalty to $25, rather than the bill's previous cap at 50% of tax liability or the $150 cap in current law; (2) requires any late filing penalty assessed on a taxpayer’s first late filing to be refunded or abated once the taxpayer files the overdue return. 

Society Tax Policy Director Greg Saul, Esq., CAE, testified in favor of H.B. 519 in February. 

Both H.B. 515 and H.B. 519 now head to the Senate for further hearings, likely the Senate Ways & Means Committee. 

Finally, after the Ohio Senate’s passage of Senate Bill 246 (SALT cap parity) unanimously 30-0 on March 16, the bill was officially assigned this week to the House Ways & Means Committee where hearings are expected to begin soon.