Tax and Finance Management

Ohioans to Receive Nearly $2 Billion in State Tax Refunds; Blamed for State Revenue Miss

This past Monday was tax day, and Ohioans have already begun to see their refunds processed by the Ohio Department of Taxation. Nearly 5.5 million Ohioans filed their taxes this year, with returns already hitting just under the $2 billion mark.

The Office of Budget and Management announced that state tax revenues in all categories fell short in March due to the higher than expected income tax refunds.

“We’re still in the midst of the tax year 2023 filing season, and we will not see how it lands and how it all fleshes out until all payments and refunds process throughout April and into May,” said OBM Director Kimberly Murnieks.

The Ohio House of Representatives is currently deliberating a bill that would phase out the state income tax. The OMA will continue to track and update its members on House Bill 386 and its potential effects on state revenue. 4/15/2024

Commercial Activity Tax Filing Deadline Approaching

The Ohio Department of Taxation recently issued a reminder that that the first quarter 2024 Commercial Activity Tax (CAT) return is due May 10, 2024. The 2023 CAT 12 annual return is also due on May 10, 2024, for all CAT annual taxpayers.

Taxpayers are required to file and pay the CAT electronically via the Ohio Business Gateway at gateway.ohio.gov. 4/09/2024

Ohio House Holds First Hearing on Bill That Would Phase Out State Income Tax

This week, The Ohio House Ways and Means Committee held its first hearing on House Bill 386, which would phase-out the state income tax on nonbusiness income over six years and repeal the Commercial Activity Tax (CAT) after 2029.

Ohio’s CAT and personal income tax represent nearly half of the state’s Fiscal Year 2023 tax revenue. The OMA has urged caution with previous legislative proposals that would repeal the CAT as it could result in shifting the state’s business tax burden to manufacturers during times of economic downturn and state revenue shortfalls. 4/09/2024

MAGNET, HBK to Host Webinar on Tax Considerations for Manufacturers

OMA partners and associate members, The Manufacturing Advocacy and Growth Network (MAGNET) and HBK will host a webinar on Apr. 25 covering tax strategies and programs that all manufacturers should understand and consider.

Learn about actions you can take throughout the year to be better prepared for tax season, including understanding proposed legislation that can help manufacturers. Click here to register. 4/09/2024

Manufacturing Boom Spearheaded by Clean Energy Credits

An article in Governing Magazine’s Spring 2024 edition details how clean energy tax credits and investments are driving a nationwide manufacturing boom.

More than $100 billion in private investments, spurred by the Inflation Reduction Act, have helped drive manufacturing expansions in states like Ohio, Michigan, and North Carolina. 4/03/2024

Senate President Matt Huffman Optimistic on Capital Budget Schedule

Earlier this week, Senate President Matt Huffman told reporters he is ‘optimistic’ that the capital spending bill could be finalized by Memorial Day.

This is despite tensions between both chambers, which have each passed separate bond-backed spending bills. 3/21/2024

State Tax Revenues Return to Normal Patterns

The Ohio Office of Budget and Management has released data for last month indicating that state tax receipts have returned to better-than-expected levels in February after a few months of shortfalls. OBM’s Director Kimberly Murnieks has attributed the previous sharp decrease to a change in state and federal law that delayed refund requests for the 2022 tax year.

Ohio added $2.1 billion in tax revenues last month, exceeding the forecast by more than $38 million. 3/21/2024

CLA: Allocate Manufacturing Overhead Costs More Quickly

OMA Connections Partner CliftonLarsonAllen has put together a guide on Power BI, a program that can help manufacturers allocate overhead costs quickly and analyze data more efficiently than traditional Excel models. 3/7/2024

Webinar: Navigating E-Invoice Regulations

This on-demand webinar from Manufacturing Drive sheds light on the new changes to global e-invoicing mandates that manufacturers need to be aware of.

The webinar focuses on compliance and navigating the complexities of e-invoicing to ensure speed and streamlined processes while reducing errors and costs. 3/7/2024

CliftonLarsonAllen to Host Webinar on Monetizing Clean Energy Credits from the Inflation Reduction Act

Next Thursday, Mar. 7, OMA connections partner CliftonLarsonAllen will host a webinar on opportunities for organizations to tap into tax credits for their green energy investments and manufacturing activities. 2/26/2024