Panel to weigh bill to fix small business tax
Published 9:49 am Monday, October 26, 2015
COLUMBUS (AP) — An Ohio House panel is slated to consider legislation aimed at fixing a budget provision that imposes an unintended tax increase on some small businesses.
The measure before the House committee on Monday also would restore some money for schools that Gov. John Kasich vetoed.
At issue in the budget is a provision that allows small business owners to deduct up to 75 percent of their first $250,000 of business income this tax year, then 100 percent in 2016. A 3-percent flat tax is then applied on the net business income both years. For some, the rate for this tax year is higher than that paid prior to the budget.
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Lawmakers had wanted the flat tax applied on business income over $250,000.
Supporters say the bill clarifies their intent.