Things for Small Business to Know
The 2018-19 Ohio Operating Budget passed both chambers of the Ohio Legislature on June 28. The bill contained numerous changes to tax policy and other areas that impact Ohio entrepreneurs.
A quick synopsis of key components that small business owners should know about included in House Bill 49 (State Operating Budget):
√ = positive X = negative
Taxes
- √ Maintained the new municipal net-profit opt-in language providing business owners a choice in how they comply with filing their net profits to each municipality in which they do business
- √Preserved the Business Investor Deduction
- √ Sales tax holiday continues for both 2017 and 2018
- √ Current Agricultural Use Value related to how farmland property taxes are calculated was fixed
Healthcare
- X We are disappointed the codification of the two-year moratorium on additional healthcare mandates was removed in conference but it remains preserved in uncodified language in the House Bill 463 from the 131st General Assembly
- √The telemedicine mandate was removed keeping the commitment of the General Assembly to not implement any new state-imposed health insurance mandates until the Department of Insurance completes its actuarial analysis on cost of existing state-imposed health insurance mandates
BWC/IC Funds Transfer
- X Kept the Senate added language permitting Ohio Budget Management Director to ability to transfer up to 2% of the Ohio Bureau of Workers’ Compensation and Industrial Commission administrative funds to the Ohio General Revenue Fund
Civil Justice
- √ Amended the Senate added language that created a new cause of action against property owners by concealed carry permit holders to create injunctive relief. The amendment also eliminated court costs, attorneys’ fees, and damages.
Public Utilities
- √ Removed the Senate language that would have given the PUCO authority to consider the credit rating of a utility when deciding a rate case(potentially allowing rates to be raised on consumers)
Construction
- √ Retained the Senate version with respect to competitive bidding through the Ohio Facilities Construction Commission. The House version would have allowed bypassing of competitive bids on a new, wide range of projects.
“With the passage of the state operating budget for 2018-19 by the Ohio Legislature, small business owners have several tax policy items they can be pleased with;
- The new municipal net-profit opt-in language provides business owners a choice in compliance when filing their net profits to each municipality in which they do business, allowing them to save time and money;
- The preservation of the Ohio Business Investor Deduction from the prior budget will allow entrepreneurs the opportunity to continue to invest those dollars back into their businesses;
- Maintaining the sales tax holiday for 2017 and 2018 helps to keep shoppers spending their back-to-school dollars here in Ohio, supporting our retailers.
We appreciate a balanced budget that does not include any new tax increases,” said Roger Geiger, Vice President and Executive Director of NFIB/Ohio.
“One very troubling inclusion with possible legal questions, however, is that the budget maintains language added by the Senate permitting the transfer up to 2% of the Ohio Bureau of Workers’ Compensation and Industrial Commission administrative funds to the General Revenue Fund,” he continued.
The Ohio Bureau of Workers’ Compensation Budget also passed both chambers. The BWC continues to do an excellent job in managing costs and investments.
“In addition to containing and reducing administrative costs, the Ohio Bureau of Workers’ Compensation has been able to offer billions in rebates and credits to employers all while reducing rates by over 28% since 2011. We applaud BWC and the administration for putting more money in the hands of Ohio’s job creators – small businesses,” said Roger Geiger, Vice President and Executive Director of NFIB/Ohio.
“The Bureau continues to be very responsive to the business community. We appreciate the inclusion of reducing the statute of limitations to file a workers’ compensation claim from two years to one year, which will help the system run more efficiently. The earlier an injury gets reported and treated, the better it is for all parties involved,” he continued.
To see what else NFIB/Ohio is monitoring in the way of legislation during the 132nd Ohio General Assembly, click the graphic below:
