By now all businesses registered with the Ohio Business Gateway should have received a letter from the Ohio Department of Taxation outlining the significant state tax law changes recently approved by Ohio Governor John Kasich and the Ohio General Assembly. The following changes are effective September 1, 2013:
Sales and Use Tax
The state sales and use tax rate will increase from 5.5% to 5.75%. Note that all local Ohio jurisdictions impose a local sales and use tax in addition to the state rate. The Ohio Department of Taxation’s online tool “The Finder” can be used to look-up sales and use tax for local taxing jurisdictions searching by address or by zip code.
Ohio Withholding Tables Revised
The Ohio Department of Taxation has issued new employer withholding tables to be used for payrolls that end on or after September 1, 2013. The tables reflect a 9% reduction in the withholding rates previously in effect for 2013, to conform to the 8.5% and 0.5% decrease in individual income tax rates in effect for taxable years 2013 and 2014, respectively. The new tables are to be used for the remainder of the 2013 calendar year and for all of 2014.
The Ohio Department of Taxation has put together a PowerPoint Presentation outlining steps for implementing the new income tax cut. Click the link below to access the presentation.
Written by: Matthew A. Migal