OSCPA staff report
Ohio’s new centralized collection system for municipal net profits taxes continues to advance even as the state’s Supreme Court prepares to schedule arguments in a legal challenge.
Ohio businesses are encouraged to join the thousands that have already registered for the system, which was made possible through the lengthy and concerted efforts of legislators, OSCPA and the business community.
In June 2017, Gov. John Kasich signed HB 49 into law, enacting a number of positive reforms for Ohio businesses, including the centralized collection of municipal net profit tax through the Ohio Department of Taxation. That reform is expected to save all businesses collectively up to $800 million per year in compliance costs, according to the Ohio Department of Taxation.
Have concerns about the Ohio Business Gateway? There are now eight software vendors that include a Modernized e-File (MeF) option in their tax preparation packages. They include CCH/Wolters Kluwer (Access, Global FX, and ProSystem FX), Corptax, Inc. (Corptax), Drake Software (Drake Tax), Tax Technologies, Inc. (Tax Series) and Thomson Reuters (GoSystem/OneSource and UltraTax CS).
“One of the advantages that we didn’t have last year is that the Ohio Department of Taxation has worked with software vendors,” OSCPA Tax Policy Director Greg Saul, Esq., CAE, said earlier this year on an episode of our podcast, The State of Business with The Ohio Society of CPAs. “You can upload directly from your commercial software.”
Users who have opted in but do not have one of the software vendors above can upload attachments directly in the Ohio Business Gateway.
By opting in with the Ohio Department of Taxation, businesses can file one municipal net profit tax return and make a single payment, either through MeF or OBG, for processing by the department. In addition, the state will take over all administrative functions for all cities a business files in, including refunds, audits and other follow-up. This will ensure consistent treatment from jurisdiction to jurisdiction.
Taxpayers must make an election to file with ODT on or before the first day of the third month of their taxable year. For example, taxpayers that operate on a calendar year basis are required to opt in to file on or before March 1, 2020 for taxable year 2021.
Another key component of the new system is the Municipality/Local Government Portal, which allows municipalities to upload files, check on the status of returns and securely share taxpayer information with ODT.
For more information, visit tax.ohio.gov/MunicipalTax.aspx;or call 844.238.0403.
Reminder: Next muni tax deadline is Oct. 1
Ohio businesses with a taxable year that begins on Aug. 1 that want to file their 2019 municipal net profit tax return with the Ohio Department of Taxation must register by midnight, Oct. 1.Businesses that choose to file the municipal tax with the state will file only one return that will cover all municipalities. Click here to opt in now with the Ohio Department of Taxation. For more information, visit tax.ohio.gov or call 844.238.0403.