This week the OMA submitted testimony to the House Finance Committee in support of a provision in the governor’s budget proposal (HB 49) that would streamline and centralize the administration of the net business tax.
Despite recent progress Ohio has one of the country’s most administratively burdensome tax structures, mostly attributable to Ohio’s local income tax system. Ohio is one of a handful of states that taxes both individuals and businesses at the local level and the only state in which each municipal corporation makes its own rules and regulations.
The administrative costs of the system disadvantage Ohio compared to its peer states. The governor’s proposal seeks to minimize compliance costs associated with filing in multiple jurisdictions.
The proposal in the state budget bill to centralize collection and administration for business filers would significantly reduce the time and cost associated with multiple net profit return filings. 4/6/2017