Tax and Finance Management

New Tax Commissioner to Visit OMA Members, March 1

On Wednesday, March 1, the OMA Tax and Finance Committee will conduct its Q1 meeting (with in-person and virtual attendance options). Register here.

The meeting will feature a look at the state budget process and emerging details. Presenters will include Kim Murnieks, director of Ohio Office of Budget and Management, and Patricia Harris, Ohio’s new tax commissioner. 2/23/2023

Competing GOP Tax Plans in Ohio House

Ohio House Republicans, despite holding a supermajority, have competing plans to lower taxes.

As reported by Gongwer News Service, Rep. Derek Merrin (R-Monclova Twp.) and his supporters have announced a plan to adopt a flat 2.5% state income tax. Merrin estimates that reducing the top rate from 3.99% to 2.5% would initially save taxpayers $1.4 billion. He’s also calling for gradual repeal of the income tax.

Last week, Speaker Jason Stephens (R-Kitts Hill) unveiled his priority list, which includes reducing the top income tax rate to 2.75%. 2/23/2023

Supply Chain Index Back to Pre-COVID-19 Levels

The U.S. Supply Chain Index, published by OMA Connections Partner RSM, has normalized to pre-pandemic levels. According to RSM’s insight, inventories are now growing at twice the rate of sales on a composite basis inside the manufacturing and trade ecosystems. 2/22/2023

Webinar on Demand: Is Manufacturing in a Recession?

Last week, OMA Connections Partner HBK presented a webinar covering the latest economic data and business trends to shed light on the current manufacturing environment. Here are the webinar’s key points. Watch the recorded webinar or check out the slides. 2/20/2023

Analysis: Potential Changes to the Federal Tax Code

OMA Connections Partner Clark Schaefer Hackett has published this insight to analyze potential changes that may be coming to the federal tax code. The analysis includes a list of expiring and currently expired tax provisions, including some that could impact manufacturers. 2/21/2023

Webinar: The Aftermath of Wayfair

The concept of sales tax nexus was forever changed in June 2018 with the landmark decision of South Dakota v. Wayfair, Inc. OMA Connections Partner GBQ Partners will host a March 9 webinar to provide an update, including a look at trends in the state administration of sales tax. Learn more and register. 2/20/2023

Corporate Transparency Act’s Impact on Small Business

In 2021, Congress passed the Corporate Transparency Act (CTA), forcing businesses to disclose ownership information when forming and operating. OMA Connections Partner Schneider Downs has published this summary, noting that any corporation, LLC, or other entity created by filing a document with a secretary of state office is subject to the CTA’s reporting requirements, but there are exceptions. 3/23/2023

Higher Interest Rates Likely After Latest Inflation Report

This week, it was reported that U.S. producer prices spiked 0.7% in January — the largest monthly gain since June. From January 2022 to January 2023, producer costs increased 6%, a decline from December’s 6.5%.

Consumer inflation grew 6.4% over 12 months, as illustrated in these charts.

Chad Moutray, chief economist of the National Association of Manufacturers, said the Federal Reserve will likely approve 25-point rate hikes at both its March 21-22 and May 2-3 meetings.

OMA Connections Partner RSM has published this report advising manufacturers to implement new technology as part of a broader strategy to combat high inflation. 2/15/2023

Tax Relief Deemed a Priority by Ohio House Leaders

Among the first 12 bills officially introduced this week by Ohio House Republicans was House Bill 1, legislation sponsored by Rep. Adam Mathews (R-Lebanon) to “lower and flatten” tax rates. HB 1 is among a dozen bills deemed priorities by Speaker Jason Stephens (R-Kitts Hill).

According to Mathews’ press release, the bill would make Ohio a flat tax state, while providing both income tax and property tax relief. 2/15/2023

State Revenue Beating Estimates by $16.7B

In January, the State of Ohio’s tax revenues returned to about 5% over forecasts following a slower December, according to the latest Office of Budget and Management report. So far this fiscal year, the state has collected $16.7 billion (or 4%) above estimates, Gongwer News Service reports, with personal income taxes responsible for much of the excess revenue. 2/13/2023