A simple, two-page Ohio Senate bill may be heavily rewritten Tuesday to ensure Ohio aligns with Internal Revenue Service changes recently adopted by Congress.
About every year, lawmakers in Columbus revise state tax law to follow tweaks to U.S. tax code. But in December, Congress overhauled taxes and state Senate Bill 22, which was originally written to conform with previous federal changes, had already passed the Senate.
Now, lawmakers need to act quickly on an update, according to Tuesday morning’s Capitol Letter, cleveland.com’s daily Statehouse briefing.
SB 22 is in the Ohio House Ways and Means Committee. Sponsor Sen. Bob Peterson, the second in GOP Senate leadership, said the legislature’s nonpartisan staff was working Monday on an amendment to the bill.
The amendment will largely be technical, Peterson said. The biggest change, he said, is that the Ohio Department of Taxation will have to track dependents. The federal $4,150 exemption for taxpayers and dependents is going away – replaced by an increased standard deduction and a form of the child tax credit.
Since the exemption remains intact in Ohio, the state will have to revise tax return forms, he said.
While most people’s income tax filings won’t switch to the new IRS rules until next year, some aspects of the law affecting businesses and military personnel go into effect this year. Peterson said the business community has been pressing the legislature to adopt SB 22, which would go into effect immediately.
“They always want it done yesterday,” he said. “I feel for them. I’ll be filing my return by the end of the month, so it needs to be done.”
The Ohio Society of CPAs will be interested in reviewing the amendment, said Greg Saul, its director of tax policy, who said the organization generally has supported Ohio legislation that conforms with IRS changes.