Ohio Tax Changes - November 2024

Week Of 11.21.2024

Ohio Corporate Income Tax—Ohio updates municipal income tax instructions for electric light companies and local exchange telephone companies.

The Ohio Department of Taxation has updated Ohio Revised Code Chapter 5745 municipal income tax instructions for electric light companies and local exchange telephone companies to inform taxpayers that effective November 20, 2024, the way to log in to file the Municipal Electric Light and Telephone tax return will change. Taxpayers now need to log in using an OHID (state digital identity standard). Taxpayers must create an OHID and email the Department and provide the company name and the email address that was used to create the OHID. (Municipal Income Tax for Electric Light Companies and Local Exchange Telephone Companies, Webpage Post, Ohio Dept. of Tax'n., 11/20/2024.)

Ohio Personal Income Tax—Alternative estimated payment methods for Ohio farmers and fishermen amended.

The Ohio Department of Taxation has amended Ohio Admin. Code Sec. 5703-7-04 (Alternative estimated payment methods for farmers and fishermen), effective November 28, 2024. In lieu of the estimated payment schedule under Ohio Rev. Code Ann. § 5747.09, farmers and fishermen may use an alternative filing method for Ohio individual income, as well as school district income tax. Farmers and fishermen who meet certain requirements now have two options. The first option is to both file and pay their annual individual income and school district income taxes in full within three months of the close of their taxable year. The second option is to pay their estimated individual income and school district income taxes in full within 15 days of the close of their taxable year, and then timely file their annual income tax and school district tax return.

Ohio Property Tax—Ohio community reinvestment area tax exemption properly denied.

The Ohio Court of Appeals upheld the decision of the trial court that affirmed the City of Richmond Heights Community Reinvestment Area (CRA) Housing Council's decision denying the taxpayer's application for a community reinvestment area tax exemption. In August 2019, the City had issued an occupancy permit to the taxpayer for their recently remodeled property, which at that time was not located within the CRA. In December 2019, the City adopted a resolution that expanded the boundaries of the CRA so that the property did fall within its new boundaries. The taxpayer applied for the CRA tax exemption but was denied on the basis that the renovations to the property were completed prior to the adoption of the resolution. The court noted that the resolution did not apply retroactively, and that it stated that the tax abatement may only be granted to those property owners who apply and start construction or remodeling after the effective date of the resolution. Likewise, the relevant statutory provision expressly states that it is to be applied prospectively. As such, the trial court did not err when it affirmed the Council's decision denying the taxpayer's application for a CRA tax exemption. (Richmond Heights Owner LLC, et al. v. Richmond Heights Community Reinvestment, Ohio Ct. App., Dkt. No. 113527, 11/21/2024.)