http://www.armcpa.com/wp-content/uploads/2017/01/kasich-2.png 266 383 Bill http://www.armcpa.com/wp-content/uploads/2018/02/logo.png Bill2017-01-31 09:01:142017-01-31 09:01:14Tax reform included in Kasich's Budget Proposal
Click here to read the Kasich Administration’s summary of the budget bill package released on January 30th, 2017.
A summary of the tax provisions are outlined below.
- The initial proposals in Gov. Kasich’s package most directly impacting Ohio businesses include:
- Centralizing municipal net profits tax filings and payments through the Ohio Business Gateway versus the current process of filing directly with each Ohio city or village or its designated agency. The governor proposes one filing form, one uniform administration and appeals process through the Ohio Department of Taxation, and that information would be uploaded from commercial software packages. Individual municipalities would continue to set rates and determine tax credits, administer employer withholding and deal with individual filers.
- The throwback rule used by a number of Ohio municipalities would be eliminated.
- No increase in the Commercial Activity Tax rate for Ohio businesses. Suppliers to Qualified Distribution Centers (QDCs) would pay 10% of gross receipts on goods delivered to QDCs.
- Reducing the personal income tax rate by an additional 17%, taking the top rate down to 4.33%. Of concern is that this decrease largely will be paid for by increasing another tax: the state sales tax rate will increase to 6.25% from 5.75%.
- The proposal to expand the sales tax base to a limited number of services such as lobbying, cable TV, certain cosmetic surgeries, and others.
- Shrinking the number of income tax brackets from 9 to 5.
- Equalizing the tax on cigarettes to include other tobacco products.