Tax and Finance Management

Study: Ohio a High Property Tax State

According to a new comparison by the Tax Foundation, Ohio’s property taxes — levied and collected by local governments — are ninth highest in the U.S. when taken as a percentage of owner-occupied housing value.

Roughly two-thirds of Ohio’s property taxes go to school districts, according to the County Commissioners Association of Ohio. The Ohio Department of Taxation reports that in tax year 2019, Ohio school districts’ operating levies yielded approximately $11 billion in taxes on property. 9/9/2020

Webinar Will Address State & Local Tax Developments

On Thursday, Sept. 24, from 11:30 a.m. to 12:30 p.m. (ET), OMA Connections Partner GBQ Partners will host a free webinar to review the flurry of tax-related activity at the state and local levels. This webinar will qualify for one hour of continuing professional education based on Ohio CPE requirements. Learn more. 9/10/2020

At a Glance: Trump and Biden on Taxes

OMA Connections Partner Crowe LLP has developed a series of scorecards to help compare the presidential candidates’ tax positions. Here is Crowe’s first scorecard covering the candidates’ proposals on individual tax issues, including capital gains, deductions, and credits. Click here for additional scorecards. 9/10/2020

House Introduces Its Withholding Repeal Bill

This week Rep. Kris Jordan (R-Ostrander) introduced House Bill 754 which would repeal Sec. 29 from House Bill 197. That section has allowed manufacturers and other Ohio businesses to continue withholding employee income tax from the company’s principal location and not employees’ home jurisdictions.

With many Ohioans working remotely due to COVID-19, the General Assembly acted wisely to save businesses the burden, expense and compliance nightmare of revamping their tax systems in the midst of the pandemic.

The bill is a companion to Sen. Kristina Roegner’s (R-Hudson) Senate Bill 352 which also repeals Sec. 29. The provision has garnered attention as the pandemic continues to drive employers’ work-from-home policies.

The OMA is tracking the matter and will be discussing it in its November 18 Tax and Finance Committee. 9/3/2020

Accounting Guidance for PPP Loans

In Ohio, nearly 150,000 loans were made to small businesses under the federal Paycheck Protection Program (PPP). Currently there is no specific guidance in U.S. generally accepted accounting principles (GAAP) that addresses when a business entity obtains a loan that is forgivable by a government entity.

OMA Connections Partner RSM has prepared this white paper to provide borrowers with accounting guidance for PPP loans. 9/1/2020

SBA Issues Additional PPP Loan Forgiveness Guidance

This week, the Small Business Administration (SBA) released additional guidance related to loan forgiveness under the Paycheck Protection Program (PPP). Under the SBA’s interim final rule, an owner-employee with less than a 5% ownership stake in a C- or S-corporation is not subject to the owner-employee compensation limitation. Also, guidance was issued for forgiveness eligibility for related-party rent payments. Read more in this analysis by OMA Connections Partner RSM. 8/26/2020

Webinar: Tax Planning in an Election Year

Regardless of this year’s election results, the implications for private equity, closely held companies, family businesses, and high net worth individuals could be dramatic. OMA Connections Partner RSM is hosting a free webcast on Thursday, Sept. 3, at 1 p.m. (ET) to examine pre-election tax planning opportunities. Learn more here. 8/26/2020

OMA’s Economic Outlook Webinar Is August 27

The OMA will host a special economic outlook webinar on Thursday, Aug. 27 from 10 to 11 a.m. (ET). Attendees will hear from leading economist Dr. George Mokrzan, director of economics for OMA Connections Partner Huntington National Bank, who will provide important information for business planning. Topics will include:

• Forecasts for economic growth, inflation, and interest rates;
• The state of consumers, businesses, manufacturing, and the international economy;
• Strengths and risks of the broad U.S. economy;
• Impacts of trade policy, monetary and fiscal policies, labor markets, and export trends; and
• Special areas relevant to the national economy and Ohio manufacturers.

Learn more and register here. 8/20/2020

Analysis: The Biden ‘Tax Vision’

The Tax Foundation has published this analysis of former Vice President Joe Biden’s “tax vision.” Among some of Biden’s key proposals are raising the corporate income tax from 21% to 28% and increasing the top individual income tax rate to 39.6% on those earning more than $400,000. 8/20/2020

Study: 80% of Ohio Municipalities Expected to See Sales Tax Revenue Loss Due to COVID-19

Ohio municipalities that rely on retail sales taxes from apparel, vehicle sales, restaurants, and tourism could see as much as a 50% decline in tax revenue because of the pandemic. That’s the finding of a new study by Yas Motoyama, an assistant professor of city and regional planning at The Ohio State University.

Motoyama’s projections show that more than 80% of the analyzed municipalities will experience some revenue loss, while about 18% communities could see an increase. 8/18/2020