A bipartisan Ohio bill to establish a temporary tax amnesty program that would forgive interest and penalties on delinquent taxes and fees passed in the State Senate on Wednesday.
House Bill (HB) 45, sponsored by State Representatives Bill Roemer (R-Richfield) and Thomas West (D-Canton), aims to “create a temporary amnesty program for delinquent state taxes, forgiving taxpayers of penalties and interest accrued if they pay the full amount of their taxes owed during an established time period. Any person who pays that amount due during the amnesty period would also be immune from criminal prosecution or civil actions related to their taxes or fees paid.”
“HB 45 would give individual Ohioans and businesses a financial incentive to fulfill their debts, which would in turn bolster our state’s revenues at a time when we need the boost,” West said.
According to the sponsors, this legislation has two main priorities, to generate extra revenue for the state and to provide economic relief for Ohioans and for businesses that have lost revenue since the beginning of the pandemic.
“The legislation provides a carrot, so to speak, for individuals and businesses to pay up on these taxes and fees, which will in turn bolster our state’s revenues at a time when we could use an extra boost,” West continued.
Under HB 45, the state’s tax commissioner would create and manage the amnesty program. Individuals or businesses with delinquent taxes or fees as of the bill’s effective date would be eligible for the program. Still, those for whom an audit or assessment has been issued would not qualify.
HB 45 also contains a $250,000 appropriation to reinforce the Department of Taxation’s administration and advertisement of the program. The bill also contains an emergency clause.
According to West, since 2001, Ohio has implemented four tax amnesty programs of varying scope. He cited a report from the Department of Taxation on the most recent program, which was conducted in 2018; the state collected $14.3 million in unpaid taxes. The program before 2012 collected $30.5 million. Since 1982, 45 other states, plus the District of Columbia, have implemented such programs as well.
“As legislators, we have a responsibility to find ways to ease the economic pain Ohioans are still feeling. I firmly believe that this legislation is one step toward doing just that,” West said.
The Ohio Chambers of Commerce said that the passage of this bill would create a fresh start for Ohioans.
“HB 45 allows a window of time for individuals and businesses to correct any missed filing obligations or unforeseen tax obligations. This will allow those individuals or entities to create a fresh start,” Tony Long of the Ohio Chambers of Commerce said.
West reintroduced this legislation earlier this year after his prior version, HB 609 of the 133rd General Assembly, successfully passed the House but stalled in the Senate towards the end of the session.
The bill passed the Senate with only one nay and from the House 71-10.
No one testified in opposition to the bill.
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Hannah Poling is a lead reporter at The Ohio Star and The Star News Network. Follow Hannah on Twitter @HannahPoling1. Email tips to [email protected].
