Posted by: Robert O'Neil
Recent proposals to change the current municipal tax structure in Ohio are being considered in an attempt to help business growth in Ohio.
With Ohio having the second most taxing jurisdictions in the U.S., it is difficult for many taxpayers to keep up with the different rules in each municipality. The proposed bill would allow the different municipalities to determine their own taxing rate, credits, and collection methods. However, the proposed legislation would make some rules uniform for all municipalities.
The major changes included in the proposal are:
- Mandating a net operating loss carryforward of five years
- Create equal treatment of pass-through entities (S-corps & Partnerships)
- Provide uniform definitions of income and deductible expenses
- Increase the exclusion period that a nonresident employee may work in a municipality before that jurisdiction's tax must be withheld from his or her wages from 12 to 20 days
- Synchronize municipal tax definitions with many state definitions, including the definition of a resident vs. nonresident
Of course, none of this has been finalized just yet, but this bill or something similar may be completed in the near future.
