News and Analysis
The Federal Unemployment Tax (FUTA) is not only a financial burden for employers, it can also be difficult to understand. OMA Connections Partner Clark Schaefer Hackett has published this handy guide to better understand the FUTA tax, as well as help control your unemployment tax costs. 10/10/2019
In a surprise reversal, the Ohio House this week amended and approved an unrelated tax bill (Senate Bill 26) to undo an inequity in Ohio’s tax code by restoring the business income tax deduction for lawyers and lobbyists. The amended bill passed on a 91-0 vote.
Last spring, the House-passed budget bill included a provision that would have raised business taxes by reducing the deduction for all pass-through entities from $250,000 to $100,000. The OMA lobbied successfully to maintain the current deduction for manufacturers. However, the final budget completely excluded lawyers and lobbyists from the deduction. The Ohio Senate must approve SB 26 before it can take effect. 10/10/2019
Just like that, Q4 is here. OMA Connections Partner Clark Schaefer Hackett reports that now is the time to think about 2019 tax planning — before you find yourself in a year-end scramble. Key areas of focus include: Section 199A business income deduction for pass-through businesses; Section 163(j) limits on interest deductions; and Section 179 depreciation incentives for qualifying property. Learn more here. 10/1/2019
If your manufacturing company is planning to build, purchase, or renovate a building — or has done so in the past several years — a cost segregation study is a powerful tool that may help boost your cash flow, reduce your tax burden, and save your company significant money. A new infographic by OMA Connections Partner Clark Schaefer Hackett sheds light on cost segregation and whether it can benefit your manufacturing business. 9/18/2019
OMA Connections Partner Roetzel & Andress has summarized changes made to Ohio’s income tax system for tax year 2019. Key changes include:
- The top personal income tax rate is now 4.797%, down from 4.997% previously.
- There is a newly enacted non-refundable credit for investing in Ohio Opportunity Zones. To claim it, you must complete an approved application and obtain credit certificate.
- For business income deductions, Ohio now uses the concept of “modified adjusted gross income” (which is the Ohio adjusted gross income, plus the business income deduction claimed on your Ohio income tax return). If you do not claim the business income deduction, the Ohio modified AGI change will not impact your Ohio income tax.
See the full summary here. 9/9/2019
The Office of Budget and Management reports that Ohio’s state government in August collected 3% more tax revenue than officials had predicted, with the month’s total receipts $62.5 million above the estimate. For the first two months of Ohio’s fiscal year — July and August — state tax receipts were up roughly $92 million compared to the same time in 2018.
August’s non-auto sales taxes exceeded the forecast by $28.1 million; auto sales taxes were $9.8 million higher. Collections from the Commercial Activity Tax exceeded estimates by $18.2 million, while personal income taxes were $15 million over projections. 9/9/2019
JobsOhio has published an infographic that illustrates the Buckeye State’s unique and appealing pro-business assets, which continue to attract new economic development projects. It highlights business-friendly tax provisions, such as the 0% rate for the commercial activity tax on products sold outside of Ohio; no state tax on corporate profits; and no state tax on personal property. The infographic also emphasizes Ohio’s strong economic development network, as well as its geographical, infrastructure, and R&D advantages. 8/29/2019
With the new fiscal year underway, Ohio’s state government tax receipts were up nearly $30 million in July compared to July 2018. The Management’s Monthly Financial Report, published by the Office of Budget and Management, shows that year-over-year total receipts in the General Revenue Fund were $2.96 billion — up $249.9 million (9.2%). Revenue from the commercial activity tax was up $14.5 million, or 28.3%, versus the previous July. The report also noted that Ohio’s employment was higher by 28,800 jobs in June compared to a year earlier, with manufacturing employment growing by a net 5,200 jobs. 8/13/2019
Across the United States, property taxes are a significant source of local government revenue — and manufacturers represent a significant portion of property taxpayers. This week, the Tax Foundation published an interactive map that allows users to see the median property tax bill paid in every U.S. county during FY 2016, the most recent year available. In Ohio, the highest property tax burden was in Delaware County, with the median bill exceeding $5,000. In several rural Ohio counties, the figure was less than $1,000. 8/7/2019
Following the enactment of Ohio’s new state budget last month, the OMA published summaries of key tax-related provisions impacting manufacturers. Now, OMA Connections Partner and accounting firm Clark Schaefer Hackett has compiled a comprehensive but easy-to-digest summary of the other notable tax provisions in the budget — including an opportunity zone credit and the 4% individual income tax rate reduction. See the tax summary here. 7/31/2019