Bill > SB325

This bill amends the Ohio Revised Code to add a new exclusion from the Commercial Activity Tax (CAT) for contractor payments to subcontractors. Specifically, the bill adds a provision that allows contractors to exclude from their gross receipts the amounts they are contractually obligated to pay to subcontractors. The CAT is a tax levied on businesses based on their gross receipts, and this change means that contractors will not have to pay tax on the portion of their receipts that will be passed through to subcontractors. The amendment applies to tax periods ending on or after the effective date of the bill. By reducing the taxable gross receipts for contractors, this change could potentially lower the tax burden for businesses in the construction and contracting industries. The bill is part of the ongoing process of refining and adjusting Ohio's tax code to potentially make it more business-friendly or address specific industry concerns.

Budget and Finance

https://www.legislature.ohio.gov/legislation/136/sb325