Among the key issues GCP was engaged in throughout the Ohio budget bill process and over the course of the last several years was our members’ intent to preserve Ohio’s small business tax deduction, which is utilized by our members for reinvestment back into their companies, workforces, and communities. Ensuring the proper treatment for a variety of business types, expenses, and investments made by business owners—to support the growth of their businesses—is a crucial focus in deliberations on tax policy.
On November 6, the Governor signed SB 26 which, in part, reverses provisions that policymakers made in the operating budget bill that required lawyers and lobbyists to pay taxes on all levels of business income, even though all other businesses are exempt on the first $250,000 of income. SB 26 restores the deduction for those industries reportedly because Ohio tax forms do not require one’s occupation to be listed in the same way that federal tax documents do. Therefore, SB 26 would also require all taxpayers claiming the business income deduction to indicate on their tax returns the North American Industry Classification System (NAICS) codes associated with each source of their business income.