This week the OMA submitted testimony to the House Ways and Means Committee in support of a specific proposal in the governor’s budget (HB 49) that would streamline and centralize the administration of net business tax.
Ohio has one of the country’s most administratively burdensome taxing 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 put Ohio at a disadvantage compared to its peer states and diverts Ohio manufacturers’ resources from productive activity. The proposal seeks to minimize compliance costs associated with filing in multiple jurisdictions.
The governor’s proposal to centralize collection and administration for business filers would significantly reduce the time and cost associated with multiple net profit return filings. 3/9/2017