OSCPA delivers several wins in state budget amid flurry of vetoes

OSCPA staff report

Despite Governor Mike DeWine’s personal record high 67 lineitem vetoes in his final Ohio biennial budget, The Ohio Society of CPAs (OSCPA) successfully protected and advanced all of its key policy priorities. The result: a series of targeted victories that benefit CPAs, taxpayers and the business community statewide.

The final version of Substitute House Bill 96 includes major tax reforms, most notably a flat tax rate of 2.75% on nonbusiness income phased in over two years. But even as major provisions were struck by the Governor's veto pen late on June 30, OSCPA’s thoughtful, behind-the-scenes advocacy ensured that important provisions supporting the accounting profession and Ohio taxpayers remained intact.

Strategic Advocacy Pays Off

OSCPA’s legislative agenda focused on practical, forwardlooking solutions – and lawmakers listened. Among the key provisions OSCPA helped enact:

Extended Refund Period for Municipal Taxes (TAXCD72):

Taxpayers who file under an extended deadline will now have three full years after the extended due date to claim municipal income tax refunds. This long-overdue change aligns Ohio policy with standard tax practices and benefits filers across the board.

ESOP Firm Ownership Clarification (ACCCD3):

New language brings long-sought clarity to ownership requirements for public accounting firms structured under Employee Stock Ownership Plans (ESOPs) within an Alternative Practice Structure (APS). This change protects firm continuity and operational flexibility.

Nonprofit Filing Deadline Alignment (TAXCD119):

Nonprofit organizations can now align their municipal net profit tax filing deadline with their unextended federal return deadline — moving from April 15 to May 15 — easing administrative burdens for these important community institutions.

A technical but impactful correction now permits an upper-tier PTE to claim a tax credit when it owns another lower-tier PTE that has paid Ohio’s PTE tax (IT 4738) or filed a composite return (IT 4708). This provides much-needed clarity for complex business structures and avoids double taxation.

A Trusted Voice at the Statehouse

“These victories reflect OSCPA’s continued efforts to reform the tax code to assist individuals and businesses alike, and to address the needs of the CPA profession,” said Greg Saul, Esq., CAE, OSCPA Vice President of Government Relations, noting that the organization worked closely with legislators and state officials throughout the budget process. “In a complex and often fast-moving legislative environment, our members can be proud of the role OSCPA plays in shaping smart, effective policy.”

Get Involved

As this budget cycle demonstrates, OSCPA is not just watching policy – it’s shaping it. Our members have several opportunities to invest in our work by volunteering for a committee, using our take action page, becoming a key contact, or donating to the Ohio CPA/PAC