News and Analysis
Payment fraud in business-to-business financial transactions is a growing problem. So that your business can better understand the risks — and take action to manage and mitigate those risks — OMA Connections Partner Huntington National Bank has published this guide. 2/11/2020
More than two-thirds of businesses have had at least one cyberattack in the last two years, with half of those attacks targeted at small businesses. OMA Connections Partner Roetzel has posted this guidance on how to determine if your business has the correct type and amount of cyber insurance. 2/10/2020
Recently, the U.S. Treasury Department issued the last and final set of regulations relating to Opportunity Zones. This brings closure to almost two years of uncertainty with respect to certain provisions. OMA Connections Partner GBQ has shared this article, which summarizes the main takeaways from the final regulations, most of which are favorable to taxpayers.
Members may also be interested in this free webinar on Feb. 25, hosted by OMA Connections Partner CliftonLarsonAllen to review the final regulations on Opportunity Zones. 2/12/2020
A new map by the Tax Foundation illustrates Ohio’s competitiveness by comparing the combined federal and state corporate tax rates of all 50 states. Only six states — Ohio, Nevada, South Dakota, Texas, Washington, and Wyoming — have no state corporate income tax. Corporations in these states are liable for only the federal tax rate of 21% (reduced from 35% by the 2017 Tax Cuts and Jobs Act).
Fifteen years ago, the OMA helped lead the repeal of Ohio’s antiquated corporate franchise tax and tangible personal property tax. They were replaced with the manufacturing-friendly Commercial Activity Tax (CAT) — a gross receipts tax that imposes a single low rate of 0.26% on in-state sales, while out-of-state sales are exempt. 2/5/2020
On Tuesday, Jan. 28, Reps. Sara Carruthers (R-Hamilton) and Jessica Miranda (D-Forest Park) provided sponsor testimony to the House Ways and Means Committee during the first hearing for House Bill 440. The legislation would exempt temporary manufacturing labor from Ohio’s sales and use tax. The bill would also expand the manufacturing sales-and-use tax exemption to include janitorial services and supplies used to clean machinery.
The OMA, which worked to get bipartisan leadership to introduce HB 440, has long advocated for both of these changes to the tax code. The OMA Tax Committee has highlighted the issues as major hurdles for manufacturers.
To help you make sure you don’t miss any important 2020 deadlines, OMA Connections Partner Clark Schaefer Hackett has provided this summary of when various tax-related forms, payments and other actions are due. 1/23/2020
OMA Connections Partner Schneider Downs reports that the IRS has provided guidance on requesting refunds for the Alternative Fuel Credit (more commonly known as Propane Tax Credit and Compressed Natural Gas Tax Credit) for tax years 2018 and 2019. This credit was retroactively reinstated by the federal spending bill enacted in late 2019.
The credit enables taxpayers who use propane or liquefied petroleum gas for off-highway business use in equipment like forklifts, or compressed natural gas in vehicles, to receive a 50-cent per-gallon credit. There is a limited time to claim this credit for 2018 and 2019. For questions, contact Schneider Downs. 1/22/2020
Forty-five states collect a sales tax — and 38 of them, including Ohio, allow local governments to impose a sales tax of their own.
According to a new map by the Tax Foundation, Ohio’s combined state-local average sales tax rate is 7.17%. That’s 21st highest nationally and higher than any of Ohio’s neighboring states. Ohio’s state sales tax rate of 5.75% is around the U.S. average, coming in at 27th highest. 1/15/2020
Preliminary figures from the Ohio Office of Budget and Management (OBM) show December’s state revenues came in just under (0.1%) estimates. Overall, the state collected nearly $1.9 billion last month, with $958 million from the combined sales tax and $829 million from personal income tax.
The Commercial Activity Tax’s December revenue trailed estimates by $1.2 million (11.7%) — but for the fiscal year, it has collected $22.7 million (2.9%) more than estimated.
For the fiscal year so far, the state has collected $93.2 million (0.8%) above the forecast. See more details regarding Ohio’s revenues and expenditures.1/7/2020
In Fiscal Year 2019, Ohio’s state government sent $36.45 billion in subsidies and capital funds to Ohio’s 88 counties. Thanks to a report from the Legislative Service Commission, Ohioans can see how those funds were distributed to their county. This map makes it easy to view the breakdown of dollars. 1/7/2020