The restructured tax plan for banks has passed the House, but the Senate wants time to carefully study it.
Despite pressure to move the bill quickly, Sen. Keith Faber, R-Celina, said he is “not optimistic” for action on Kasich’s new financial institutions tax before the GOP-controlled Senate goes on hiatus in June.
The Senate has questions related to the mechanics of Kasich’s initial proposal and modifications made in the House version that passed last week — including a lowering of revenue projections by $25 million to $30 million.
The governor and others are touting the bill as shifting the relative tax burden from smaller banks to larger ones while lowering rates overall.
As reported in CPA Takeaways
, the bill is designed to:
- Close “loopholes” that some think are being used by larger, multi-state institutions (for example, shifting funds among affiliates and exempting goodwill).
- Replace two alternative taxes (the corporate franchise tax and the intangibles tax) with a single tax.
- Reduce tax rates for community banks.
- Change the “apportionment” formulas that financial institutions use to apportion what is taxable capital inside Ohio versus their entire capital.
Read more from The Columbus Dispatch