Senate Bill 208 Seeks to Correct Ohio Small Business Tax Increase

Date: September 10, 2015

With the state operating budget signed into law, and many
provisions becoming effective in late September, the Ohio General Assembly returns
this fall to tackle some additional important business issues.  While state operations are funded for the
next two years, other crucial small-business subjects must be addressed in the
near-term.

One immediate need is the correction of an inadvertent error
contained in the state operating budget related to the small-business investor
deduction.  Recognizing the importance of
small-business to Ohio’s economic vitality, the legislature elected to renew
the 75 percent deduction on the first $250,000 of business income in 2015 for
pass-through entities and increase it to 100 percent in 2016. 

Additionally, a three percent flat tax included as part of
the package was meant to be applied to income over $250,000.  Unfortunately, through the amending process,
the three percent will be applied to all remaining business income after the 75
percent deduction resulting in a tax increase for some pass-through
entities.  A correction to this
inadvertent tax hike is in the works through Senate Bill 208, sponsored by NFIB
member Sen. Bill Beagle.

You can read NFIB/Ohio legislative director Chris Ferruso’s
testimony here: 

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