BUZZ ARCHIVE

Ohio BTA Rejects Tax Commissioner’s Overly Narrow View of Where Manufacturing Begins

PDF/Printer Friendly Version The Ohio Board of Tax Appeals (BTA) reversed the Department’s interpretation of where manufacturing begins for sales tax purposes in Marion Ethanol, LLC (et. al.) v. McClain, BTA Case Nos. 2017-337 and 2017-338 (May 16, 2019). Marion Ethanol, LLC (Marion) operates biorefineries that manufacture ethanol and other corn-based products, including animal feed, corn oil, and wet and dry distillers grains. The process to produce the ethanol and other corn-based products begins with corn, the primary raw material, being delivered to Marion’s facilities where it is tested for quality, moisture, and temperature. Accepted corn is emptied into sub-grade hoppers that funnel t

Oregon Enacts a Corporate Activity Tax to Pay for Education

PDF/Printer Friendly Version On May 16, 2019, Oregon Governor Kate Brown signed H.B. 3427 enacting the Corporate Activity Tax (CAT) effective January 1, 2020. Oregon’s CAT is similar to Ohio’s Commercial Activity Tax. Oregon’s CAT is a tax on the privilege of doing business in Oregon and is measured based on gross receipts less inputs or labor costs. However, Oregon’s CAT is in addition to all of Oregon’s other business taxes, while Ohio’s Commercial Activity Tax replaced the corporation franchise tax and personal property tax. The Oregon CAT is similar to Ohio’s Commercial Activity Tax in the following aspects: The Oregon CAT has some provisions that differ from Ohio’s Commercial Activity

Ohio House of Representatives’ Budget Increases Business Taxes by $1.2 Billion

PDF/Printer Friendly Version Ohio House of Representatives’ Budget Increases Business Taxes by $1.2 Billion On May 9, 2019, the Ohio House of Representatives passed its version of Ohio’s biennial budget bill, Sub. H.B. 166 (“the Bill”), and sent it to the Ohio Senate for consideration. As you will recall, Governor Mike DeWine offered his budget proposal in March of this year. The Governor’s budget proposal called for an increase of nearly $4.0 billion in new GRF spending, to be paid for by a growing Ohio economy.1 The Ohio House’s final budget proposal keeps GRF spending at similar levels, but adds an additional $664 million of all-funds spending over the biennium to the Governor’s all-fun

House Bill 150 Would Significantly Reduce the Excise Tax on Financial Institutions

PDF/Printer Friendly Version House Bill No 150 ("HB 150”) was introduced in the Ohio House on March 19, 2019 and was referred to the Financial Institutions Committee on March 26, 2019. The Bill contains several provisions that reduce the financial institutions tax (“FIT”) by excluding newly-created banks from the FIT for a designated number of years, reducing the rate of the FIT on the first $200 million of Ohio equity capital, and limiting the base on which the FIT is calculated. The Bill excludes from the definition of “financial institution” in R.C. 5726.01(H) a “de novo bank organization,” which is defined as “a bank organization that first began operations in the taxable year preceding

Déjà vu - Ohio Proposes Higher Taxes on Businesses and Business Owners in Exchange for Individual In

PDF/Printer Friendly Version The Ohio House of Representatives Finance Committee introduced a substitute biennial budget bill this week, Sub. H.B. 166 (“Bill”). As you will recall, Governor Mike DeWine offered his budget proposal in March of this year. The Governor’s budget proposal called for an increase of $2.8 billion in new spending, to be paid for by a growing Ohio economy. The Ohio House’s budget proposal builds on the Governor’s proposed new spending by adding an additional $526 million of spending over the biennium, above the Governor’s original proposal. The House is also proposing a mix of tax law changes that have similar results as previous Kasich Administration budget proposa

Simplifying the Taxation of Digital Goods

PDF/Printer Friendly Version Simplifying the Taxation of Digital Goods Congress recently introduced federal legislation to simplify the taxation of digital goods by states in companion bills H.R. 1725 and S. 765, introduced concurrently on March 13, 2019. The "Digital Goods and Services Tax Fairness Act of 2019" (the Act) aims to standardize tax sourcing as it relates to the sale of digital goods and services. Tax "sourcing" refers to the process of determining which taxing authority has jurisdiction to impose tax on a transaction. Currently, in the absence of federal legislation, individual states may determine how and where the sale of a digital good or service is sourced. This can result

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