On Thursday November 5, 2020, the Ohio Supreme Court upheld House Bill 49, which created a centralized collection system for Ohio local business income tax. Over 100 Ohio taxing jurisdictions, including Athens, Akron and Elyria, recently challenged the state’s centralized collection agency, which was created back in 2017. Business taxpayers operating within Ohio who may have been waiting to file local taxes using the centralized agency can now do so confidently.
>> Read more about centralized filing in “Registration Open for Ohio’s New Centralized Municipal Business Filing System”
Taxpayers must make an election to pay taxes via the centralized system, otherwise you must remit payment to each Ohio municipality in which you file. The centralized filing opt-in is required to be filed by the first day of the third month of your taxable year.
Using the centralized system to pay your municipal taxes is worth considering, depending on your tax situation, as the Ohio Department of Taxation previously estimated the system can save taxpayers collectively $800 million in annual compliance costs.
Contact Karen Raghanti at email@example.com or a member of your service team to discuss this topic further.
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Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.