McDonald Hopkins tax attorney and Managing Member of the Cleveland office, David Kall, shared his perspective on how Ohio HB 33 overhauls taxes, impacting individuals and businesses, in a commentary article published by Crain's Cleveland Business.
You can click here to read the entire article on the Crain's Cleveland website. A short excerpt of the article is below:
On July 3, Gov. Mike DeWine signed into law Ohio’s 2024-2025 budget bill, House Bill 33, which included several taxpayer-friendly changes to a number of state taxes, including the Commercial Activity Tax (CAT), pass-through entity tax (PTET), sales tax, and individual income tax.
Perhaps the biggest change relates to the CAT, a privilege tax imposed on a business’ gross receipts.
House Bill 33 eliminates the annual minimum tax, as well as the annual filing requirement. However, the quarterly filing requirement remains intact. Additionally, the CAT exclusion will increase from $150,000 to $3 million beginning in 2024 and up to $6 million in 2025. As such, business owners with less than $3 and $6 million dollars of taxable gross receipts will be exempt from CAT filing beginning 2024 and 2025, respectively. According to the Ohio Senate Finance Committee’s Summary of House Bill 33, these changes will exempt nearly 90% of Ohio-based businesses from the CAT by 2025.
