The Ohio Chamber of Commerce has been working to address one of the Chamber’s public policy priorities – taxation of pass through entities (PTEs), including withholding requirements.
Yesterday, House Bill 467 was introduced to reform withholding requirements for specific PTEs. HB 467 reduces two current rates: 8.5% and 5% to 4%. This will more align the rate to the new top marginal income tax enacted in the last Ohio budget bill (HB 166). Remember, also, that the top rate for business income remains at 3%. So, this new 4% rate will fall within the two top rates currently in effect in Ohio. This new rate will reduce the need to file refund claims and assist partners of PTEs as they budget estimated payments throughout a tax year.
The Ohio Chamber will work with the sponsors to move HB 467 through the committee process and get the bill to the floor of the House of Representatives as soon as possible.