NWOTCA

Meeting Date:  5/18/2010

 

Call to Order

The meeting was called to order in Archbold and began with the announcement that Cheryl Layman was going to stay on as Bowling Green Tax Commissioner until October 2010.  A replacement has not yet been hired and the Commissioner position will be reposting in June or July with an annual salary range of approximately $56,000.00 to $74,000.00.

 

Updates on legislation/OML seminar

OML Seminar

Jim Neusser attended the last OML meeting and handed out a tentative schedule of the conference this July 14, 15, and 16.  The schedule should be on the OML website by the end of the week.  The Thursday Ohio Business Gateway session is to include discussions on The Finder; the OBG name and address database. 

 

Legislation

Ohio Society of CPA discussions on legislation concluded that there is no time to produce and pass legislation regarding preparer issues with city income tax. However, the Society is determined to have some legislation passed in 2011; with or without city input.

            Regarding 2106 Employee Expense Deductions, the OSCPA supports city uniformity for handling the deduction, but removing the requirement could also be supported.

            The CPAs support using the state bright-line test for domicile issues.  While the OSCPA supports changes that are revenue neutral, that view is in a broad sense; meaning the legislation can cause one city’s revenues to increase while another’s decreases.  Therefore the CPAs are also looking to bring uniformity to penalty and interest rates and net operating loss carryovers.

            Regarding filing of consolidated returns, Columbus has married their regulations with the Federal regulations.  Once a consolidated return is filed, the company cannot separate filings by subsidiary unless they acquire permission to do so.  Jim also said that if cities believe that a subsidiary filing is not representative, the city can force the company to file a consolidated return. 

            The CPAs continued their desire for municipal tax administrators to be certified.  The OSCPA has offered to host tax administrator training on its website, and the content could be supplied by the OML and similar organizations. 

            The OSCPA is pushing for central collection of individual municipal income taxes.  Their budget recommendations include funds to study the issue.  While the Ohio Business Gateway is not viewed favorably, the CPAs propose that the state could be broken up into sections to collect the section’s taxes and collections could include other taxes like local sales taxes and county property taxes. 

 

Other

Jim spoke about a Supplemental Executive Retirement Plan (SERP) taxability appeal to the Ohio Board of Tax Appeals by RITA for Shaker Heights.  Cleveland also has a similar case to bring contingent upon the outcome of the Shaker Heights case. 

 

Seminars

            The group then began discussions of topics for the upcoming preparers’ seminar in late October (date to be determined) and the tax office seminar set for September 14th at the WW Knights Preserve in Perrysburg. 

Topics for the preparer seminar were requested.  Past topics (2106, 12 day rule, business allocation formula, payroll allocation to cities) were mentioned and other topics such as final returns for residents moving out with the proration issues, and rentals were brought up. 

Discussion on attachments to city returns was received favorably by all.  Andrew of Findlay has a sheet he sends to preparers to inform them of requirements.  This sheet can be modified as necessary and provided to all attendees as well as posted on the NWOTCA website. 

Angie suggested the use of a panel again since this has worked well in the past.  She also suggested we all think about issues we have with preparers and e-mail her the list.  The committee for the preparers’ seminar will meet after lunch. 

 

New Business

            Angie is currently working to update the website and requests ideas. 

 

Information Exchange

            In the information exchange, many cities are still reporting revenues down compared to the prior year.  Some cities are reporting some increasing withholding.  Janet of Fremont reported that a couple of companies are actually adding employees this year.  Napoleon and Findlay are both up due to rate increases (Findlay also had credit elimination for part of 2009). 

 

Next Meeting

            The next meeting will be June 8th in Whitehouse and will be a workshop format for discussion of tax office problems and issues.