Multistate Tax Alert: Ohio Financial Institutions Tax
The Ohio legislature has passed a new Financial Institutions Tax (“FIT”) applicable to qualifying Ohio Banking Organizations, as discussed in the attached alert, which is anticipated to be approved by the Governor this week.
The FIT replaces the current Ohio Franchise Tax applicable to financial institutions and also moves other taxpayers from the Franchise Tax or Dealer In Intangibles Tax (“DIT”) to the Ohio Commercial Activity Tax (“CAT”). Ohio’s Amended Substitute House Bill 510 (“H.B. 510”) is generally effective beginning 1/1/2014.
The attached alert describes these changes.