News and Analysis
While most tax filings have been extended to July 15, 2020, many business filers still have questions. In response, the Ohio Department of Taxation has posted an FAQs page. 5/11/2020
The IRS recently announced the extension of certain deadlines for taxpayers making investments in Qualified Opportunity Zone (QOZ) funds. At noon (ET) on Wednesday, June 3, OMA Connections Partner GBQ Partners will host a free webinar to review tax incentives available for QOZ investments and discuss related issues. 5/14/2020
Ohio depends on individual income taxes more than many of its peers, according to a new comparison by the Tax Foundation. The think tank found that nearly 26% of Ohio’s total state and local collections were derived from personal income taxes. That is higher than the U.S. average of 23%, but considerably lower than our neighbor to the south, Kentucky, which depends on individual income taxes for nearly 34% of its revenue. 5/13/2020
This week, the OMA wrote Ohio Tax Commissioner Jeff McClain, asking him to act on the authority granted in House Bill 197 to defer tax payments and deadlines during the COVID-19 emergency. The OMA — which advocated for this authority when HB 197 was considered by the General Assembly — specifically asked the commissioner to defer approaching deadlines of the commercial activity tax, as well as the beer and wine excise tax. 5/7/2020
The Office of Budget and Management this week released preliminary figures showing Ohio’s overall tax receipts finished the month of April at $866.5 million — or 35.3% below estimates. Sales and use taxes missed estimates by 24% or $236.7 million. Income tax revenues were 50.5% or $635.7 million below projections. 5/6/2020
Gov. DeWine this week announced a $775 million reduction in planned state spending for the remainder of Fiscal Year 2020, which ends June 30. The cuts, which are due to a $1 billion swing in the state’s coffers since late February, will impact:
- Medicaid spending (approximately $210 million);
- K-12 foundation payments ($300 million);
- Other education line items ($55 million);
- Higher education ($110 million);
- All other state agencies ($100 million).
On Wednesday, May 6, State Budget Director Kimberly Murnieks provided details on the administration’s $775 million budget reduction plan as it will impact higher education (reductions by school district) and K-12 education. (Click these links to see how your local schools will be affected.) 5/6/2020
Ohio’s gasoline and diesel sales are down more than 50% statewide, according to reports, which could mean big setbacks for transportation projects. The Columbus Dispatch this week reported that “all the funding gains from the 37.5% hike in the state motor-fuel tax ushered in by Gov. Mi DeWine last July might be wiped out unless the economy soon picks up and people resume driving.” 5/4/2020
The employee retention credit, created as part of the federal CARES Act, has raised many questions. OMA Connections Partner Plante Moran is hosting a free webinar at 2 p.m. (ET) on Wednesday, May 20, to address the most significant aspects of the credit. 5/7/202
OMA Connections Partner GBQ Partners will host a free webinar at noon (ET) on Wednesday, May 13, to discuss numerous accounting and disclosure considerations that should be top of mind during the COVID-19 emergency, including: PPP loan accounting; asset impairments (PPE, goodwill, etc.); accounts receivable collectability; and debt restructurings. 5/7/2020
The Federal Reserve has announced new details on the Main Street Lending Program, including lowering the minimum loan size to $500,000 to enable more small businesses to benefit from the program. Also, the program’s expanded eligibility includes companies with up to 15,000 employees or $5 billion in annual revenues.
Here is an overview of the program from the National Association of Manufacturers.
The Main Street Lending Program is separate from the Paycheck Protection Program, which is primarily designed for companies with fewer than 500 employees. Companies may qualify for both programs. 4/30/2020