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.
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The Columbus Dispatch.