Centralized filing registrations gain momentum
On March 12, 2018
A flurry of registrations last week raised the number of businesses opting in to centralized filing of municipal net profits taxes to more than 2,000 – and still counting. This is despite an ongoing effort by Ohio cities to reverse the municipal income tax reform measure that was stronly supported by Ohio REALTORS and other business groups.
The cities have officially appealed the ruling to the 10th District Court of Appeals. However, the Municipal Tax Reform Coalition — that includes Ohio REALTORS, Ohio Society of CPAs and others — scored another victory in the Franklin County Court of Common Pleas on Monday (March 5) as Judge Cain denied the cities’ motion to “stay” his decision on centralized collection while the appeal is pending. Therefore, everything is moving forward as planned. If you want to track the case as it proceeds in the 10th District, it’s case number 18-AP-000144 and you can sign up for updates here: http://fcdcfcjs.co.franklin.oh.us/CaseInformationOnline
While the deadline passed on March 1 for businesses with a calendar year-end to opt in for centralized filing of municipal net profits taxes for the 2018 tax year, registration remains open for businesses with fiscal years that don’t match the calendar.
“Given the amount of uncertainty and friction around this new option,” said Ohio Department of Taxation spokesman Gary Gudmundson, “and given the short time span in which to get the word out and alert businesses to the signup, attracting more than 2,300 business taxpayers – and more than 1,100 in the last two days – is a clear signal that this option has tremendous appeal.”
All businesses that opted in should have notified all cities where they filed last year by March 1, as well. The next deadline for calendar-year-end businesses is the first-quarter estimated payment, due April 15.
“We’ve seen many single-city taxpayers, and a few who file in hundreds of cities, who’ve opted in,” said Gudmundson. “As awareness grows, we fully expect the customer base to grow significantly too.”
The centralized filing option is beneficial for Ohio businesses that file returns in multiple cities or villages, as it cuts down on administration headaches and reduces compliance costs. The Ohio Department of Taxation (ODT) estimates it will save businesses a combined $1.6 billion annually in compliance costs if all Ohio businesses participate.
Finally, if you’d like to stay informed of ongoing developments regarding this issue — click here to access the Municipal Tax Reform Coalition website.