After months of negotiations, Governor Mike DeWine signed Ohio's FY 2020-2021 general operating budget, and the following are a few key points that may impact you or your business:
- Personal income tax rates decrease by 4% reducing the top individual tax rate to roughly 4.8%.
- Taxpayers with taxable income below $21,750 will no longer pay Ohio tax.
- The budget maintains the Business Income Deduction at $250,000 and maintains the 3% flat rate on business income in excess of $250,000. Lawyers and lobbyists are no longer eligible for the deduction. Sorry to our attorney friends. We didn’t lobby for this provision!
- The budget invests $15 million each year of the biennium in the TechCred program which is applicable to businesses who provide training to incumbent and prospective employees to earn a micro credential or certificate. More to come on this training reimbursement program.
Check out other blogs published by our tax team:
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Small Businesses Can Benefit From Deducting Vehicle Costs on Their Taxes
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Several States Enact Economic Nexus Thresholds For Sales Use Tax, In Response to Wayfair Decision
If you would like to speak to one of our tax specialists for more information, please call: 1 (866) 760-0940, visit our website, or send a note to Miranda.Hawk@brixeyandmeyer.com to setup a time to speak.