News and Analysis
On Thursday, June 15, the OMA Tax and Finance Committee will hold its Q2 meeting, with in-person and virtual attendance options. Register here.
The meeting will feature a visit from state Rep. Bill Roemer (R-Richfield), chair of the House Ways and Means Committee. OMA Connections Partner GBQ Partners will highlight key tax provisions in FY2024-25 state budget. 6/7/2023
Electric vehicle tax credits were revamped under the federal Inflation Reduction Act — but the rules surrounding what vehicles are eligible and which taxpayers qualify are convoluted. OMA Connections Partner Schneider Downs has published this EV tax credit overview, which may be helpful to members with operations tied to EVs. 6/7/2023
Ohio offers the sixth-best climate for business property taxes, according to a revised comparison by the Tax Foundation. The study examined state and local taxes on real and personal property, net worth, and asset transfers. See this map for a county-level look at property tax burdens. 5/31/2023
- Consumer confidence has sunk to six-month low, but consumers’ appetite for big-ticket items, including autos and appliances, increased, according to OMA Connections Partner RSM.
- RSM’s U.S. Manufacturing Outlook Index continued to fall in May as firms reported decreases in shipments and new orders.
- April’s 676,000 U.S. manufacturing job openings were the lowest since February 2021, according to the National Association of Manufacturers.
- There were 120,000 layoffs by U.S. manufacturers in April, the most since July 2020.
- Mortgage demand dipped to its lowest level in three months this week, CNBC reports.
Meanwhile, new data from the personal consumption expenditures (PCE) price index — the Fed’s preferred inflation gauge — shows year-over-year inflation at 4.4%. That’s higher than the 4.2% annual rate in March, but well off the 6.9% seen in June 2022. 6/1/2023
In addition to detailing House-approved provisions to reduce the personal income tax burden, increase sales tax penalties, and adjust R&D credits, the webinar provides updates on Ohio’s municipal income tax. 5/22/2023
For businesses in need of capital, asset-based financing can be a solution — whether a company is growing or experiencing trouble, according to OMA Connections Partner Fifth Third Bank.
In this insight, Fifth Third notes that even during economic uncertainty, asset-based lending parameters rarely deviate, making it an “especially good solution” for working capital-intensive industries, like manufacturing. 5/24/2023
OMA Connections Partner RSM has prepared in-depth guides on complex and challenging accounting topics. Read these guides for comprehensive information on the applicable U.S. GAAP, as well as examples. 5/24/2023
This week, the OMA testified before the Senate Insurance Committee in support of Senate Bill 116, sponsored by Sen. George Lang (R-West Chester Twp.) and Sen. Mark Romanchuk (R-Mansfield) to reform Ohio’s unemployment compensation system.
The bill aims to protect employers from future payroll tax increases, while ensuring the system’s long-term stability. It would do so by increasing the taxable wage base for employer contributions from $9,000 to $9,500; ending dependency benefits; and tying the maximum number of weeks for unemployment benefits to the state’s jobless rate — currently at a historic low. Read the bill summary.
Ohio’s biennial budget (House Bill 33) is currently before by the Senate Finance Committee. The committee’s chair, Sen. Matt Dolan (R-Chagrin Falls), said this week that tax relief will be part of the Senate’s budget plan.
When it approved its version of the budget last month, the House included a provision to provide income tax relief for earnings between $26,050 and $92,150. Senate President Matt Huffman (R-Lima) has said he wants a larger tax cut than the House provided. 5/17/2023
- The Tax Foundation ranks Ohio among the worst 15 states for sales tax burden and complexity. (See the sales tax rates in all 88 counties.)
- Bricker Graydon LLC, the OMA’s general counsel, has published this “cheat sheet” on the Inflation Reduction Act’s manufacturing product credit, which supports development of renewable energy technology and energy storage.
- OMA Connections Partner Clark Schaefer Hackett has published this infographic to help businesses decide whether to outsource their sales tax compliance, as well as this sales tax compliance guide for businesses selling in multiple states.
- Employers can use their educational assistance programs to help pay employee student loans, according to the IRS’ small-business guidance.
- OMA Connections Partner Plante Moran has posted this on-demand webinar regarding tax and accounting issues related to hiring outside the U.S.
Members should note that the next OMA Tax and Finance Committee meeting is June 15. Register here. 5/18/2023