Members of the House Ways and Means Committee held a conference at which they unveiled a substitute version of House Bill 5. The bill proposes sweeping changes to Ohio’s municipal income tax laws, attempting to bring a greater degree of uniformity to municipal income taxation in the state.
Significant provisions of the substitute bill include a list of factors to determine residency for municipal tax purposes; mandating a five-year period for carrying forward net operating losses; extension of the number of days that an employee can be present within a jurisdiction before the employer is required to withhold tax on wages paid to the employee from 13 to 21; and uniform deadlines for filing returns, paying tax, and claiming refunds.
The bill has generated a great deal of controversy between business interests, which have been pushing hard for the changes, and municipal jurisdictions that are already reeling from reductions in state money and fearing further losses in revenue. Read more about the bill here.
