Governor Dewine signed House Bill 197 yesterday afternoon to address much needed legislation as the State continues to battle the coronavirus. House Bill 197 addresses a number of issues including extending the income tax filing and payment deadline until July 15^th which is intended to provide relief to taxpayers and help offset the economic impact of the coronavirus.

State Taxes

Following legislation by the Federal government to move the tax filing deadline from April 15^th to July 15^th, Ohio will now follow the same deadlines. The new deadline applies to Ohio individual tax, school district income tax, pass through entity tax and those taxpayers that have opted in to the municipal net profit tax administered through the state’s centralized filing system.

Also following the Federal tax extension, Ohio will be waiving penalties and interest on tax payments made by July 15^th that were originally due on April 15^th. Quarterly estimated income tax payments for individuals, estates, trusts and certain other businesses normally scheduled for April 15^th and June 15^th have also been extended to July 15^th.

Municipal Taxes

City ordinances in the State of Ohio traditionally include language that the municipal income tax deadline follows the State of Ohio deadline. However, we recommend confirming with your local municipality to verify the tax due date has been extended to July 15^th.

The bill also specifies that for municipal income tax purposes, employees who are teleworking or must report to a temporary worksite during the emergency period, or within 30 days thereafter, are considered to be working at their otherwise principal place of work. Therefore, employees teleworking should continue to have municipal income tax withheld from their paycheck for the municipal locality the employee typically works in.

Unemployment

House Bill 197 also codifies the Governor’s executive order related to unemployment compensation. The bill waives the first week waiting period for individuals to receive employment, changes the eligibility to include COVID-19 related unemployment situations and waives the work search requirement to receive benefits.

If you have any questions about this new legislation, we encourage you to reach out to your point of contact here at H&M.