What's happening now?
On Feb. 21, 2018, Judge David E. Cain of the Franklin County Court of Common Pleas cleared the path for Ohio businesses to continue using a new, streamlined municipal tax filing system recommended by many Ohio tax professionals. In addition to rejecting the preliminary injunction request filed by some Ohio municipalities, Cain ruled the centralized collection provisions are constitutional and terminated the case. He also denied the cities’ motion to “stay” centralized collection while the appeal is pending at the 10th District Court of Appeals on March 5. Learn more here.
Business taxpayers who file net profits returns in more than one municipality can opt in now to file one central return through the Ohio Business Gateway for 2018 filings. The deadline is March 1, 2018 for calendar year businesses. Read more here.
“There is a huge cost to businesses to file in hundreds of cities depending on how many they are operating in. Uniformity is critical. We estimated that if every business in Ohio opted into centralized filing, it would save businesses $1.6 billion per year.” - Joe Testa, Ohio Tax Commissioner, January 2018
Ohio businesses gained a great new benefit —the option to file and pay municipal net profits taxes through the Ohio Business Gateway. One form and one payment for all cities means less time and headaches in filing in hundreds of separate municipalities.
Since 2016, a number of reforms have been signed into law that simplify compliance with municipal tax requirements. That includes uniform filing dates and definitions of taxable income across the state. That adds up to better compliance!
Ohio’s municipal tax structure is the most burdensome in the nation, with nearly 600 municipalities that have their own different rules. That makes compliance costly and time-consuming. H.B. 5 brought much-needed relief and savings for businesses that can be reinvested in growth and job creation.