CPA Voice - November/December 2021

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advocacy in focus

Advocacy wins continue as 2021 nears its end OSCPA staff report The OSCPA advocacy team has seen success on numerous fronts for the profession, moving the needle on issues related to the CPA exam, municipal income tax, sales and use tax, and pass-through entities. CPA Exam rule changes The Accountancy Board of Ohio finalized rule changes advocated by The Ohio Society of CPAs that clarifies when future CPA Exam candidates may begin the exam process. The rule – 4701-3-03, which became effective Oct. 20 – will allow students to start taking one or more parts of the CPA Exam after finishing at least 24 of the required 30 accounting hours and 24 business hours. The 24 hours must include coursework in auditing, financial accounting, management accounting or cost accounting, and taxation. House Bill 442 adopted last year previously permitted candidates to start the exam process when they reach at least 120 of the needed 150 semester hours of education. All 150 semester hours, including all 30 accounting hours, still must be completed for licensure.

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Municipal net profits tax OSCPA continues to work with the Ohio Department of Taxation (ODT) in attempts to refine the centralized collection process for the municipal net profits tax. Two provisions of House Bill 228 are especially helpful to taxpayers: (1) extending the date that a taxpayer may opt in or out of the stateadministered tax from March 1 to April 15 for calendar year-end businesses; (2) requiring ODT – rather than the taxpayer – to notify cities when a taxpayer has opted in or out. H.B. 228 unanimously passed the House and Senate on Oct. 27 and was signed into law by Gov. DeWine in early November. Elimination of sales and use tax on employment services Ohio’s biennial budget bill, Amended Substitute House Bill 110, eliminated from Ohio’s sales and use tax employment services (providing personnel to perform work under the supervision and control of the purchaser) and employment placement services (locating employment for a job seeker or locating job candidates for an employer).

OSCPA has long sought this change, and previously recommended eliminating the taxability of these transactions in our 2016 Tax Reform Task Force report. This new law took effect on Oct. 1, and it is estimated to save employers $300 million just over the next two fiscal years alone. Business income deduction, SALT deduction bills Senate Bill 247 provides clarifying guidance to ODT and taxpayers that the BID applies to the gains from the sale of an ownership interest in a business. Senate Bill 246 is Ohio’s attempt to enact legislation clarifying that taxes paid by a pass-through entity do not count toward an owner’s $10,000 cap limitation on the state and local tax deduction for federal income tax purposes. OSCPA offered proponent testimony to the Senate Ways and Means Committee in support of both S.B. 246 and S.B. 247 on Oct. 26. To learn how you can get involved and make an impact for the profession, go to advocacy.