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Ohio’s New CAT Rules

August 25, 2023

Ohio’s Corporate Activity Tax (CAT) — a broad-based tax, which imposes a low rate (0.26%) across several industries — was established under the 2005 tax reform law. By replacing the former franchise tax and tangible personal property tax, both which imposed a disproportionate burden on manufacturers, the CAT has helped Ohio’s manufacturing competitiveness.

But changes are underway following the recent enactment of the new biennium budget (House Bill 33). The Ohio Department of Taxation has released this summary.

Under the new rules, the CAT will be more dependent on larger manufacturers for revenue, posing a long-term threat to the manufacturing community when the next economic downturn hits and policymakers search for additional revenue. 8/22/2023

At a Glance: State Fuel Taxes

August 18, 2023

According to a comparison by the Tax Foundation, Ohio has the 10th highest gasoline and diesel taxes in the U.S. The Buckeye State collects 47 cents per gallon on diesel and 38.5 cents per gallon on gasoline. The Foundation notes that while few taxpayers cheer fuel taxes, these systems work well as user fees to finance road construction, maintenance, and repair. 8/16/2023

IRS Clarifies ‘Supply Chain’ Claims Tied to ERC

August 18, 2023

OMA Connections Partner CliftonLarsonAllen reports that the IRS allows an employer to qualify for the employee retention credit (ERC) if a supplier’s operations were suspended due to a governmental COVID-19 order. But in this guidance, the firm writes that the IRS has clarified that businesses do not qualify for the ERC simply because of general supply chain disruptions. 8/16/2023

Ohio Revenues Stay Strong With New Fiscal Year

August 11, 2023

Ohio’s July tax receipts improved by more than $60 million (3%) over the same period last year, according to the latest data from the Office of Budget and Management. All the major taxes collected more than forecast except the auto sales and use tax, which came up $26.1 million (15.2%) short. Read OBM’s monthly financial report. 8/10/2023

Guidance: Internal Controls in Manufacturing

August 11, 2023

Effective internal controls translate into more reliable information that is vital for a company’s decision-making to achieve its goals. Check out this insight from OMA Connections Partner HBK to ensure your company is making the most of its inventory controls and cost controls to enhance business performance. 8/10/2023

Economic Barometer: U.S. Manufacturing Index Shows Continued Contraction

August 4, 2023
  • The U.S. Manufacturing Outlook Index published by OMA Connections Partner RSM has registered its 15th consecutive month of negative values, but recovery is expected soon, experts say.
  • Unlike manufacturing, services have been in and out of contraction, but mostly positive, with prices increasing for several consecutive months.
  • U.S. consumers are depleting their excess savings and that could hamper the economy’s ability to achieve a soft landing, according to Federal Reserve economists.

Meanwhile, ratings agency Fitch this week downgraded the U.S. government’s long-term credit rating, but most economists say they don’t have immediate concerns. These charts give an overview of the nation’s long-term fiscal challenges. 8/3/2023

RSM: Interest Rate Hike Unlikely in September

August 4, 2023

OMA Connections Partner RSM does not expect another interest rate increase in September as the Fed begins to pivot from solely focusing on its price stability mandate to beginning to balance that with its other mandate — full employment. Read RSM’s insight. 8/1/2023

Webinar: Strategies for Finance Digitalization

August 4, 2023

On Thursday, Aug. 10, OMA Connections Partner Plante Moran will host a webinar to spotlight how digital transformation can increase business efficiencies and profitability. This event will showcase best practices while helping participants break down the finance digitalization journey into actionable steps. Register now. 7/31/2023

Several Ohio Counties Finalizing Tax Valuation Changes

August 4, 2023

Ohio requires counties to reappraise real property tax values every six years. In the interim, counties are required to update values. OMA Connections Partner Vorys reports that for tax year 2023, 28 counties are required to conduct a full reappraisal and another 13 counties must update values. See the list of counties. 8/1/2023

U.S. GDP Growth Beats Estimates for Q2

July 28, 2023

Nationwide, real GDP grew 2.4% at the annual rate in Q2 2023, building on the 2% growth rate of Q1, according to federal data. This as business investment on productivity-enhancing equipment continues to be one of the brightest spots across the U.S. economy, according to RSM, an OMA Connections Partner.

Chad Moutray, chief economist for the National Association of Manufacturers, published this GDP graph, noting “the U.S. economy continues to show signs of resilience despite ongoing challenges and worries about the outlook.” 7/27/2023