To help its members better understand these change in the state budget and the Ohio tax code in general, the Wilmington-Clinton County Chamber of Commerce is excited to welcome the man who runs Ohio’s tax system.
Tax Commissioner Joe Testa will be joining the chamber for a roundtable to discuss the latest Ohio tax changes, explain how those new laws will impact business taxpayers, and talk about ways to best interact with the Ohio Department of Taxation. Come meet and talk with him to learn what’s new, and have an opportunity to share your thoughts about state taxes. The meeting will kick-off July 20 at 9 a.m. at the Wilmington Community Room, 69 N. South S., Wilmington.
Last week, Gov.John Kasich signed a $71 billion budget that sets the funding priorities for the next two years. There is a lot in the more than 2,000-page budget developed under the leadership of House Speaker Cliff Rosenberger and Senate President Keith Faber, but there are a few changes in the tax code that are of interest to Ohio businesses.
First, the new budget cuts the income tax rate by 6.3 percent, reducing the top rate below 5 percent.
The second major change in the budget is an increase in the Small Business Tax Deduction. For tax year 2015, the new budge includes a 75 percent income tax exemption for business owner of pass through entities (S corporations, Partnerships, Limited Liability Company’s and Sole Proprietors) on the first $250,000 ($125,000 for single filers or married couples that file separately). Beginning in 2016 and beyond, 100 percent of the first $250,000 is permanently exempt from Ohio tax.
Also included in this business tax cut is a provision that caps flow through income over $250,000 at a flat tax rate of 3 percent.