By Brett W. Neate, CPA, MTax
Senior Tax Manager
Business owners have another reason to smile today. Governor Kasich recently signed into law House Bill 64, Ohio’s biennial budget, which contained a number of tax benefits for pass-through business owners. In addition to an across-the-board 6.3% reduction in income tax rates, the budget contained the following changes that will benefit many business owners:
Related read: Notice to All Business Owners
- The small business income tax deduction for 2015 will be 75% of the first $250,000 of Ohio sourced business income. For tax years after 2015, the deduction increases to 100% of the first $250,000 of Ohio sourced business income.
- For business income above $250,000, pass-through business owners will pay a 3% flat tax.
Also of note were provisions that were proposed during the budget process that were not signed into law. Provisions failing to be signed into law were:
- an increase to the Commercial Activity Tax
- an increase to the sales tax rate
- an expansion of the sales tax base to include many professional services
Understanding and following proposed and passed tax laws can be confusing. As a member of our tax services group, I specialize in helping business owners plan effective strategies that help position thier company for success.
To schedule your no cost, no obligation assessment, contact me at 216-831-0733 or bneate@zinnerco.com or any of our tax planning professionals.