Business tax filings could get easier in Ohio
(The Center Square) – A bill passed by the Ohio House would eliminate a step businesses owners must take to file taxes with the state and local governments and free up time for those owners to create more jobs and increase business, according to the bill’s sponsor.
The legislation allows businesses to opt into a system run by the Ohio Department of Taxation to pay net profits taxes to the state, and the state notifies each municipality of the taxes. Currently, business owners can decide to be part of the state’s system but must notify municipalities themselves, instead of a one-time notification.
“The current system for filing municipal net profits tax in Ohio creates unnecessary paperwork for our hard-working business owners,” Rep. Bill Roemer, R-Richfield, said. “As if the complications of the tax code itself weren’t enough, the state also requires businesses to jump through unnecessary administration hoops to meet their tax obligations. This bill streamlines and simplifies this process, so our business owners can spend more time creating jobs and contributing to our local economies, instead of complying with burdensome filing requirements.”
House Bill 228 uses a system already in place by utilizing an existing web portal at the Department of Taxation to securely transfer information between the state and local governments.
It also extends the taxpayer’s deadline to opt in or opt out of the state administration of the municipal tax profit tax to April 15, the same date as a taxpayer’s first estimated tax payment.
Another piece of the bill would allow some entities or corporations to deduct any pension or retirement benefits paid to a retired partner, shareholder or member. That, according to the Ohio Legislative Service Commission, likely would result in an undetermined statewide revenue loss to municipalities.
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