Ohio State and Local Tax Updates July 2019

Ohio tax-free holiday on school clothing, books and supplies

July 31, 2019

Need to buy school clothing, books and supplies? The Ohio Department of Taxation reminds taxpayers that OH will have a sales tax holiday starting at 12 a.m. Friday, Aug. 2, through 11:59 p.m. Sunday, Aug. 4. During this period, the following items are exempt from sales and use tax: 1) clothing priced at $75 per item or less, 2) school supplies priced at $20 per item or less, and 3) school instructional material priced at $20 per item or less. Items used in a trade or business aren’t exempt during the sales tax holiday.

The Department provides a link to its website to address frequently asked questions about the “holiday”: http://bit.ly/2K71QMx.

Ohio township employees may now use compensatory time off in lieu of overtime pay

July 31, 2019

The recently enacted budget bill contains a provision that permits township employees to elect to take compensatory time off at a rate of 1½ times the number of overtime hours worked. The employee and the employee’s supervisor must agree on a mutually convenient time for the employee to use the earned compensatory time. It must be used within 180 days after the employee worked the overtime. The provision takes effect on the 91st day after the bill is filed with the Secretary of State. Currently, only county employees are permitted this option.

Ohio community center using property as a school is granted partial tax exemption

July 24, 2019

The center bought the property in 2015, and used a portion for educational purposes in 2017. The tax commissioner had split-listed the property, granting a partial exemption for 2018 but denying an exemption for 2016 and 2017. The OH Board of Tax Appeals (BTA) ruled that the portion exempted for 2018 also should be exempted for 2017, because the taxpayer was actively preparing the property for public benefit in 2017. However, the BTA pointed out that the taxpayer failed to present evidence that it was working on the property in 2016, and, as such, affirmed the commissioner’s denial decision for 2016.

Joint Ambulance District can collect previously imposed taxes on withdrawn subdivision member

July 24, 2019

A joint ambulance district may continue to levy and collect previously imposed taxes from a subdivision member who withdrew from the district, according to an Ohio Attorney General (OAG) opinion. In this case, the taxes had been imposed for the payment of debt charges on bonds, notes, and certificates of indebtedness incurred by the district during the subdivision’s membership. However, the OAG ruled that the district will not impose upon the subdivision any further continuing obligation to contribute to the district’s future operating expenses, unless the obligations are fixed charges. (OAG, 2019-022)

Mahoning County qualifies for disaster tax relief

July 10, 2019

The IRS has announced that Mahoning County residents are eligible for federal disaster tax relief due to the severe storm and flooding that took place on May 27. Victims in affected counties may qualify for individual assistance, and have extra time to complete tax-related tasks such as filing returns and making payments.

Bridgeport, Ohio levies new tax

July 10, 2019

A new tax for Bridgeport, Ohio, will be levied soon. The OH Regional Income Tax Agency has announced that the Village of Bridgeport will impose a local income tax rate of 1% beginning August 1.

Ohio amends tangible personal property exemption for farming, agriculture, horticulture, or floriculture

July 10, 2019

The Ohio Department of Taxation has amended state law to clarify the exemption for tangible personal property used in farming, agriculture, horticulture, or floriculture. Those who provide services for others in these fields are deemed directly engaged in these activities and are eligible for the exemption. For example, a veterinarian providing services to a farmer’s livestock is engaged in farming and can purchase exempt from sales tax the items primarily used in treating the livestock. Another clarification: Building materials such as lumber, nails, glass, and similar items aren’t exempt unless they’re used to build livestock or horticultural structures.

A charitable use property tax exemption denied to Toledo

July 3, 2019

A charitable use property tax exemption is denied to the City of Toledo, Ohio. The OH Board of Tax Appeals (BTA) affirmed a tax commissioner ruling that denied the city’s request for an exemption for public property used for charitable purposes. The city had argued that the property, an airplane hangar, was leased to an experimental aircraft group to educate the public and its members about aviation and the science of flight. But the BTA noted that, to qualify for a charitable exemption, municipally owned property must be used only for the accommodation and support of the poor or be leased to the state or other political subdivision for public purposes.

Ohio legislation creates a new exemption from the state’s minimum wage and overtime laws.

July 3, 2019

Effective July 3, 2019, a qualifying employee doesn’t include an individual who operates a vehicle or vessel performing services for a motor carrier transporting property under certain circumstances for state minimum wage and overtime purposes. Motor carriers are typically companies that employ large semitruck and bus drivers. However, a motor carrier may elect to apply minimum wage and overtime provisions to an excluded individual. (House Bill 62)


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