Last week, we reported that the $8 billion in BWC dividends issued last year to Ohio employers could be subject to Ohio’s Commercial Activity Tax (CAT). But this week, a fast-tracked measure (Senate Bill 18) to conform the state’s tax code with recent federal changes was amended with language that would exempt the BWC dividends from the CAT, beginning with dividends paid in 2020.
SB 18, which has been approved by the full Senate and now awaits House action, would also exempt federal Paycheck Protection Program loan proceeds from the CAT.
This development will be discussed Wednesday, Feb. 17 when the OMA’s Tax and Finance Committee will hold (via Zoom) its first meeting of 2021. Also on the agenda will be Ohio Tax Commissioner Jeff McClain, who will brief members on the state budget. Register now. 2/11/2021