by J.D. Davidson
Filing municipal income taxes for businesses might get a little easier if a bill passed unanimously by the Ohio General Assembly gets Gov. Mike DeWine’s signature.
State Rep. Bill Roemer, R-Richfield, said House Bill 228 will reduce unnecessary state and municipality paperwork for Ohio businesses and simplify the tax filing process.
“The way we currently file municipal net profits taxes in Ohio places an unneeded burden on business owners,” Roemer said. “The last thing businesses need is another hoop to jump through. This bill streamlines the filing process so business owners can get back to creating jobs and contributing to their communities. I am very pleased that both the House and Senate have unanimously agreed to send this bill to Governor DeWine.”
Currently, an Ohio business must report profits and file taxes with each individual municipality it does business in, leaving the responsibility to the business owner. The bill requires the Ohio Department of Taxation to develop and maintain a web portal that businesses can report information to, and the state and municipalities can levy taxes.
That, according to Roemer, would cut down on business administrative costs. Roemer also said the Department of Taxation already has a web portal, and the bill would ensure it’s preserved.
The bill also allows pass-through entities to deduct certain retirement benefit payments for municipal income tax purposes, which the Ohio Legislative Service Commission said would reduce income tax revenue to some communities. The amount of loss is uncertain, according to OLSC.
The legislation also removes a 0.5% administration fee the state charges municipalities to collect and then send tax revenues out to communities. The Ohio Supreme Court ruled last year that fee was unconstitutional.
The bill received support from the Ohio Society of CPAs and the Ohio Municipal League.
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An Ohio native, J.D. Davidson is a veteran journalist with more than 30 years of experience in newspapers in Ohio, Georgia, Alabama and Texas. He has served as a reporter, editor, managing editor and publisher. He is regional editor for The Center Square.
Photo “Bill Roemer” by Bill Roemer.
