COLUMBUS – The Ohio Senate today passed SB 246, sponsored by State Senators Michael Rulli
(R-Salem) and Senator Geogre Lang
(R-West Chester.) This bill is designed to give tax relief to small businesses set up as S corporations, partnerships, and LLCs.
The Tax Cuts and Jobs Act of 2017 imposed a $10,000 cap on the amount of state and local taxes that Ohio taxpayers can deduct in their federal returns. Due to this cap, Ohio small businesses are subject to higher tax rates, which could hurt their bottom-line and put them at a disadvantage to businesses organized as C corporations and businesses operating in states that do not have an income tax.
"This bill will let Ohio re-establish state and local tax parity," said Rulli. "That will allow Ohio business to remain competitive in relation to other businesses throughout the country."
Twenty-three other states have already passed similar state and local taxes parity reform bills.