News and Analysis
Tax Relief Deemed a Priority by Ohio House Leaders
February 17, 2023Among 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
February 17, 2023In 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
Webinars Will Examine New Rules for R&E Expenses
February 17, 2023At 2 p.m. Thursday, Feb. 23, OMA Connections Partner RSM will host a webinar for manufacturers dealing with the change in tax treatment for research and experimental (R&E) costs. Taxpayers must now capitalize and amortize R&E costs, versus deducting expenses in the year incurred. Learn more and register.
Also, at noon on Wednesday, Feb. 22, OMA Connections Partner CliftonLarsonAllen will conduct its annual “R&D Tax Credit Update” webinar. Register here. 2/14/2023
Study: Ohio’s State-Local Sales Tax Burden Is in Top 20
February 10, 2023An updated comparison by the Tax Foundation shows Ohio’s average combined state-and-local sales tax rate of 7.24% is 20th highest in the U.S., higher than neighboring states. Ohio’s position is unchanged from 2022’s ranking.
Ohio’s state sales tax rate is 5.75%, while the average local sales tax rate is 1.49%. 2/7/2023
Report: Ohio House GOP Eyeing Income Tax Cut
February 10, 2023On Feb. 7, the Ohio House Finance Committee held its first meeting to review the governor’s FY 2024-2025 budget. Afterwards, committee Chair Rep. Jay Edwards (R-Nelsonville) told reporters that the majority of GOP members wants a tax cut, most likely an income tax cut.
Gongwer News Service quoted Edwards as saying: “I don’t think you’re going to see an elimination of the income tax yet, but I think we’re going to take the first steps toward trying to get closer to a flat tax.” 2/7/2023
At a Glance: 2023 Tax Deadlines
February 10, 2023To spotlight important 2023 tax deadlines, OMA Connections Partner Clark Schaefer Hackett has published this summary. The publication highlights when various tax-related forms, payments, and other actions are due for businesses and individuals. 2/6/2023
Guidance to Avoid R&E Underpayment Penalties
February 10, 2023Unfortunately, the requirement to capitalize research and experimental (R&E) expenses was not deferred in a federal 2022 year-end tax bill.
OMA Connections Partner CliftonLarsonAllen reports that with Congress unlikely to act soon, action is needed now to avoid underpayment penalties. Read the firm’s insights. 2/6/2023
Consider LIFO for Immediate Tax Benefits
February 10, 2023U.S. Generally Accepted Accounting Principles (GAAP) and the federal tax code allow businesses to choose one of four methods of accounting for inventory, including Last in First out (LIFO).
OMA Connections Partner HBK reports that LIFO is often overlooked, but that in periods of inventory growth — or inflation — LIFO can provide immediate tax benefits to businesses with large inventories. Read more. 2/7/2023
U.S. Manufacturing Index Contracts Again
February 3, 2023The slowdown in manufacturing continued in December and January, according to OMA Connections Partner RSM and its Manufacturing Outlook Index. The index suggests “an increased likelihood of a manufacturing recession this year.”
OMA Connections Partner HBK has published this list of actions that manufacturers can take to prepare for a potential recession. 1/31/2023
More IRS Guidance for R&D Tax Credits
February 3, 2023The IRS recently issued guidance requiring taxpayers to submit additional information to substantiate their R&D Tax Credit claim in order to receive refunds via an amended return. OMA Connections Partner Schneider Downs has published its insights regarding this development. 1/31/2023