Ohio - Financial institutions tax reform legislation 

December 20: Ohio House Bill 510 includes numerous changes to the taxation of financial institutions, and was sent to the governor for signature on December 14, 2012.

Effective for the tax year that commences January 1, 2014, House Bill 510 imposes a new financial institutions tax (FIT) for the privilege of doing business in Ohio. The new FIT is based on equity capital and will replace the current franchise tax, which is based on net worth and imposed at a rate of 13 mills.


In addition, certain taxpayers previously paying the dealers- in-intangibles tax (DIT) will be subject to the Commercial Activity Tax (CAT) beginning in 2014.


Overall, House Bill 510 has been touted as closing loopholes enjoyed by bigger multistate banks and reducing the burden on smaller Ohio banks. However, overall the measure is intended to be revenue neutral, as the expanded base will offset the reduced rates.


Read a December 2012 report [PDF 100 KB] prepared by KPMG LLP: Ohio - Financial institutions tax reform legislation




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