Tax and Finance Management

Preparing for the Return of the Superfund Tax

On July 1, the reinstated Superfund Excise Tax — approved as part of the federal infrastructure law — will take effect for the first time since late 1995. As noted in this analysis by OMA Connections Partner HBK, the revived tax will impact the sale of taxable chemicals, as well as the sale or use of imported “taxable substances” utilizing one or more taxable chemicals in their manufacture.

Because many manufacturers and importers may be unfamiliar with the Superfund tax, the OMA’s June 15 Tax Committee meeting will feature an update from OMA Connections Partner Schneider Downs. Register here. 6/7/2022

Employee Retention Credit Still Available for Manufacturers

The Employee Retention Credit (ERC) remains available for employers to claim on amended payroll tax returns for qualifying periods — assuming they have met the eligibility criteria and paid eligible wages during those times. OMA Connections Partner CliftonLarsonAllen has published this guidance, urging manufacturers to use caution when calculating and claiming the ERC. 6/7/2022

Are You Ready If Someone Wants to Buy Your Business?

OMA Connections Partner Gilmore Jasion Mahler says merger and acquisition activity is a fever pitch. For business owners receiving inquiries from prospective buyers, the firm has published this guidance.

Meanwhile, Connections Partner MCM advises business owners that hope to sell to ensure their company is profitable and attractive to potential buyers. The firm has published these recommendations to reduce overhead. 6/7/2022

Reduce Taxes, Boost Cash Flow With Cost Segregation Study

Is your business depreciating real property over a 39- or 27.5-year period? If so, OMA Connections Partner Clark Schaefer Hackett says this may be a good time to perform a cost segregation study. You could be eligible to accelerate depreciation or capture missed depreciation from a prior year by the time you file your 2022 taxes. 6/8/2022

NAM Takes SEC to Court

The National Association of Manufacturers (NAM) Legal Center has taken action in federal court, arguing that the Securities and Exchange Commission (SEC) has unlawfully suspended a rule governing proxy advisory firms. These firms advise institutional investors (like retirement fund managers) on how to vote on the policies of public companies in which the funds invest, giving the firms significant power over public companies.

The NAM secured a victory in 2020 when the SEC finalized a rule increasing oversight of proxy advisory firms. Under the Biden administration, however, the SEC’s new leadership has announced it will not enforce the 2020 rule. 6/1/2022

Cyber Insurance Webinar, June 8

Cyber insurance continues to be one of the most discussed, yet misunderstood coverages in the business world. On June 8 at 11 a.m., OMA Connections Partner Schneider Downs will host a complimentary webinar to discuss the changing landscape of cyber insurance, critical requirements to qualify for coverage, and the current state of cybersecurity. Register here. 6/1/2022

Study: Ohio No. 35 for Business Sales Tax Climate

Sales taxes can make a state less attractive to businesses since they can drive up the cost of production. According to the non-partisan Tax Foundation latest study, Ohio is ranked in the bottom third for sales taxes on businesses, coming in at No. 35. Wisconsin and Michigan lead the regional comparison, coming in at Nos. 7 and 10, respectively.

According to the Foundation, states that rank poorly have high sales tax rates, high excise tax rates, complicated sales tax administration, and apply the sales tax to a variety of business inputs while exempting many final consumer purchases. 5/25/2022

U.S. Has World’s Sixth-Largest Debt Burden

The U.S. is facing a debt crisis, as illustrated by this infographic based on International Monetary Fund (IMF) data. The U.S. has the world’s sixth-worst debt burden, worth 134% of its GDP in 2020 — trailing only Venezuela, Japan, Greece, Italy, and Portugal. 5/23/2022

Guidance for Tightening Up Billing, Collections

Businesses are advised to occasionally revisit billing and collections processes. In this new guidance, OMA Connections Partner Clark Schaefer Hackett suggests ensuring your company has an up-to-date accounts receivable system that generates invoices; flags problem accounts; runs various reports; and automates statement generation and finance fees. 5/24/2022

At a Glance: Ohio’s Transportation Budget, Fuel Taxes

The General Assembly has passed House Bill 338, which will boost Ohio’s highway and public transportation funds with $690 million provided by the new federal infrastructure law. Among other things, the plan authorizes the Ohio Department of Transportation (ODOT) to award design and build contracts of up to $1.5 billion for Cincinnati’s Brent Spence Bridge.

Earlier this month, the Ohio Legislative Service Commission — a non-partisan agency that provides the General Assembly with research and other services — published this fact sheet to summarize ODOT’s budget and construction highlights. The document shows Ohio’s gasoline tax is regionally competitive.

In 2019, Gov. DeWine signed House Bill 62, which increased the state’s gasoline tax by 10.5 cents a gallon, and the diesel fuel tax by 19 cents a gallon. The OMA opposed the bifurcation of the gasoline and diesel tax rates, which had been the same prior to the enactment of HB 62. 5/17/2022