On March 27, 2020, Ohio Governor Mike DeWine signed into law Ohio House Bill 197 (HB 197), which provides emergency relief to Ohioans during the COVID-19 pandemic. This legislation includes several tax provisions for individuals and businesses.

To align with federal guidelines, Ohio has extended the filing and payment deadline for Ohio individual income tax, the school district income tax and the pass-through entity tax. Quarterly estimated payments for individuals, estates, trusts and certain businesses have also been granted an extension until July 15 to file and pay without penalty or interest. The extension applies to first and second quarterly payments, which are normally scheduled for April 15 and June 15 for most taxpayers. The Commercial Activity Tax (CAT) and sales tax filings are unaffected by HB 197 and will retain their original due dates.

Since the Ohio municipal income tax filing due date for individuals is tied to filing your Ohio return, the July 15 extension also applies to those filings as well. Business taxpayers that file their municipal net profit tax returns through the state’s centralized filing system are also extended; however, each city has discretion on whether they will allow the July 15 extension. Both the Regional Income Tax Agency (RITA) and Central Collection Agency (CCA), which administer city net profits tax returns for a multitude of cities, have issued guidance that they are extending their returns to match Ohio’s July 15 deadline.

HB 197 provides a provision that for municipal income tax withholding purposes, an employee working from home or from a temporary worksite during the emergency or for 30 days past it,  they will be considered as working from their principal place of work for purposes of the “20-day rule.” This will circumvent employers from having to withhold and file in numerous new jurisdictions as a result of stay at home orders in Ohio.

HB 197 also provides individuals some relief with regard- to unemployment benefits. The mandatory one week waiting period is suspended for those individuals seeking unemployment. Individuals will also not have to adhere to the work search requirements during the emergency or until December 1, 2020, whichever is earlier.

If you have questions about how HB 197 impacts you or your business, contact your BMF Advisor.

 

Visit our COVID-19 Resource Center for the latest updates and resources for you and your business.

About the Authors

Mark A. Rossetti

CMI
Senior Manager, State and Local Tax Services

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