Tax and Finance Management

House Advances Construction Contract Mandate

The Ohio House this week passed HB 203, OMA-opposed legislation that mandates payment terms in construction contracts and eliminates the owner’s right to negotiate by requiring payment within 30 days (or face an exorbitant 18% interest penalty).

Ignoring opposition from the business community, the House passed the bill on a 76-12 vote, which included significant support from Republicans. The bill now goes to the Senate. Senators need to hear from businesses; contact your senator and ask them to oppose HB 203. 12/7/2023

Ohio Receives Credit Upgrade From Moody’s

Moody’s Investor Service has bumped Ohio’s issuer rating to Aaa from Aa1. Aaa obligations are considered to be of the highest quality and subject to the lowest level of credit risk. Read Gov. DeWine’s press release. 12/4/2023

Committee to Examine Ohio’s Property Tax Burden

While Ohio lawmakers scramble to make temporary changes to Ohio’s property tax rules before year’s end, a new joint committee of the legislature will spend 2024 searching for long-term solutions to rising property taxes.

Established by the state operating budget (House Bill 33), the Committee on Property Tax Review and Reform will be able to hold hearings on pending legislation related to property taxation, according to Gongwer News Service.

Meanwhile, the conservative Buckeye Institute has written that rising property taxes “require local action” that addresses “local governments’ inefficiencies.” 12/4/2023

On-Demand Webinar: Tax Planning for Manufacturers

OMA Connections Partner HBK has made available its recent webinar discussing tax planning strategies that manufacturers should consider. Watch it on demand. 12/5/2023

Think Tank: Ohio 16th Best for Fiscal Freedom

Ohio is in the Cato Institute’s top 20 states for fiscal freedom, coming in at No. 16. The free-market think tank determines fiscal freedom by comparing state and local tax burden, employment and spending, and debt. The comparison is part of the institute’s “Freedom in the 50 States” index. 12/4/2023

New Reporting Mandate Will Impact 32M Businesses

Beginning Jan. 1, an estimated 32.6 million existing businesses will be required to comply with a new federal reporting requirement intended to help law enforcement combat money laundering and terrorism financing.

OMA Connections Partner GBQ has published this summary of the Corporate Transparency Act, warning that failure to comply may lead to substantial penalties. OMA Connections Partner HBK has also published this analysis. 11/28/2023

Webinars Offer Year-End Tax and Finance Updates

Several OMA Connections Partners are hosting tax and finance-related webinars this month to help businesses wrap up 2023 activity and plan for the new year. The following are some of the noteworthy webinars:

• Dec. 5, 9 a.m.: Schneider Downs, tax update;
• Dec. 5, 11 a.m.: Plante Moran, audit and accounting standards updates and reminders;
• Dec. 6, 11 a.m.: GBQ, year-end business tax update;
• Dec. 6, noon: CliftonLarsonAllen, 2024 economic outlook;
• Dec. 7, 11 a.m.: GBQ, state and local income tax update; and
• Dec. 7, 2 p.m.: Plante Moran, Inflation Reduction Act incentives for energy-efficient buildings.

Click the name of the OMA Connections Partner to register for any of these learning events. 11/30/2023

OSU’s Ned Hill: Slow Growth in 2024, but No Recession

Manufacturers are approaching 2024 with caution, according experts who participated in a recent IndustryWeek webinar.

Dr. Ned Hill of The Ohio State University, and a frequent OMA contributor, was among the panelists. He said manufacturers are taking steps to lower supply chain risks, adding that he foresees slow growth for next year, but no recession. See these slides from Hill’s presentation.

Meanwhile, OMA Connections Partner RSM reports that its U.S. Manufacturing Outlook Index shows continued industry slowdown even as jobs recover. Members can register now for RSM’s 2024 middle-market economic outlook. The complimentary webcast is set for 1 p.m. Dec. 20. 11/27/2023

Industrial Production Posts Significant Decline

U.S. industrial production fell more than expected in October due to the United Auto Workers strike. OMA Connections Partner RSM reports production of motor vehicle parts declined by 10%, marking the biggest drop since the start of the pandemic. 11/20/2023

Think Tank: Short Recession Expected in 2024

The Conference Board Leading Economic Index^® fell 0.8% in October, marking the index’s nineteenth consecutive decline in the index. The Conference Board says it expects elevated inflation, high interest rates, and contracting consumer spending to tip the U.S. economy into a very short recession in 2024. 11/20/2023