Recent Articles

Jul 1Jeff Matthews

Ohio legislators enact new budget cutting measures – HB 483

Jul 1Jeff Matthews

On June 17, 2014, Governor Kasich and the Ohio General Assembly enacted new measures to further reduce the state’s budget.  House Bill 483 contains a number of provisions which lower the tax bill for most Ohioans.  Those improvements include:

  • A 10% cut in personal income tax rates to be phased in over 3 years.  The 1% cut scheduled for 2015 has been accelerated to 1/1/2014.  Beginning after July 1, 2014, withholding tables will be reduced to withhold less from taxpayer’s checks.
  • A Small Business Tax cut that allows owners and investors to deduct from taxable income 75% of the first $250,000 in net business income for 2014.  Note this is a temporary change from 50% just for 2014.
  • Low and middle income taxpayers that qualify for Earned Income Tax Credits will see the Ohio EITC double from 5% to 10% of the federal credit.
  • The personal exemption for Ohioans making less than $40,000 a year increases from $1,700 to $2,200 and for those making $40,000 to $80,000 a year, the exemption increases from $1,700 to $1,950.[1]

There are a number of other elements to HB 483 including:

  • The establishment of a statute of limitations for claims of professional negligence against professional surveyors.   Up until this bill, there was no statute of limitation for negligence claims against surveyors.
  • A new initiative to allow career centers and community colleges to assist students over 22 to earn credits toward a high school diploma.
  • Funds to establish mentoring programs run by community groups and local business partners.
  • Additional funds to support tobacco usage cessation.
  • Additional funding for mental illness and addiction safe houses and crisis intervention services.
  • Additional funding for Drug Abuse Prevention programs.

Ohio is making great strides in improving the attractiveness of the state to new and expanding employers.  As of 2013, before the impact of this legislation, according to Chief Executive.net, Ohio was ranked fifth in the nation in job creation and No. 1 in the Midwest.[2]  Much remains to be done as a 2013 report by Forbes Magazine ranked Ohio 28th in business cost, 35th in economic climate and 47th in labor supply.[3]  On a positive note, the Forbes article also ranked Ohio 7th in regulatory environment.

_____________________________________________________________________________

[1] Ohio Department of Taxation press release dated June 17, 2014

[2] “2014 Best and Worst States for Business” published in Chief Executive.net May 8, 2014, accessed June 2014.

[3] “Virginia Tops the 2013 List of Best States for Business” published 9/25/13 in Forbes Magazine, accessed June 2014.

B2B CFO®

Free Discovery AnalysisTM

Fill out the form to receive your
Free Discovery AnalysisTM (a $1600 value)