House Bill 166

Sponsor:         Representation Scott Oelslager (R-North Canton)

Status:            Pending Senate Finance Committee

Summary:       House Bill 166 the biennial budget bill

                        Among the provisions of the bill as passed by the house

A number of stand alone bills were added to the bill, including

• HB 75 – requires a local government to pass a resolution before filling a property tax complaint. OREIA supports
• HB149 – exempts from property tac the value of unimproved land subdivided for residential development. OREIA supports
• HB 187 – disallows local tax issues at August special elections. OREIA supports
• The Governor inserted language that authorizes taxpayers to apply to the Ohio Department of Health for nonrefundable income tax credit costs incurred to abate lead hazards in a dwelling unit built before 1978. Limits the amount of each credit to the lesser of actual lead abatement costs incurred, the amount of such costs listed on an application for the credit, or $10,000 per taxpayer.  OREIA supports
  • Costs for a licensed specialist to conduct a lead risk assessment, lead abatement project, or clearance examination (a test conducted to verify that the lead hazard has been abated); and costs to relocate the dwelling’s occupants to protect them during the lead abatement process. OREIA supports
• Authorizes the credits beginning in taxable years beginning on or after January 1, 2020. Authorizes any unused credit to be carried forward up to 7 years.  The program was allocated $5 million in total credits over the biennium.  However, the Ohio House amended the program to be not more than a maximum of $5 million per year.  OREIA supports.
• The Director of Health or a board of health is required to issue an order to vacate, prohibiting the owner or manager of a residential unit, child-care facility, or school from using that property for any purpose, if the owner or manager is out of compliance with a lead hazard control order. OREIA neutral
• Authorizes the Director or a board of health to request a prosecuting attorney, city director of law, village solicitor, or similar chief legal officer to commence a civil action for injunctive and other equitable relief against any person who violates an order to vacate. OREIA neutral
• Currently, small business owners of pass-through entities can deduct 100% of the first $250,000 of business income from their personal income tax return, with additional income above $250,000 taxed at a rate of 3%. The change made substantially reduces the Small Business Investor Income Deduction from $250,000 to $100,000 – a tax increase of up to $4,500 per small business owner.  OREIA opposes.
• The second change removes the provision that caps the income tax at 3% above the limit, meaning all business income above $100,000 will now be taxed at the corresponding marginal income tax rates. OREIA opposes

OREIA Statement:

The Ohio Real Estate Investors Association (OREIA) is an interested party to House Bill 166.  The bill has many provisions that seek to improve the conditions for property owners, including local tax policy changes and the ability to improve properties containing lead-based paint: however, as small business owners we are concerned about the greater scheme of small business taxation rates.