Tax Tip of the Week | No. 287 | Municipal Tax Reform for Ohio

Tax Tip of the Week | Jan 28, 2015 | No. 287 | Municipal Tax Reform for OhioAfter many years of effort...

Towards the end of 2014, the Ohio House and Senate finally passed House Bill 5. Governor Kasich has not yet signed the bill as of this writing, although he is expected to do so.This bill will significantly reduce and simplify the filing of city tax returns.  There are over 600 municipalities in the state that collect city income taxes.  Over the years, each municipality created its own set of rules and regulations making this the most arcane tax system in America.  As CPAs, we can now focus on helping business owners in growing their business instead of dealing with the complexity of so many different sets of tax rules.Note, however, that most of the provisions of the bill will not go into effect until January 1, 2016. Some other provisions of the bill will be implemented on January 1, 2017.  We will run another Tax Tip of the Week later this year to help you get ready for your 2016 city tax returns.We congratulate The Ohio Society of CPAs in leading the effort for this significant change in municipal tax reform.You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.Rick Prewitt - the guy behind TTW...until next week.