The Richland Community Development Group in collaboration with The Richland Area Chamber of Commerce and North Central State College (NCSC) hosted the Cutting Taxes and Growing Ohio Small Business program at the NCSC Kehoe Center on Monday. Representatives from four state level offices came to Shelby to discuss programs and initiatives designed to lower taxes for small business owners.
Mayor Marilyn John of Shelby welcomed the meeting attendees with a reminder that 64% of new private sector jobs are created by small businesses. “We don’t have to look far to see the importance of small business here in Richland County,” said John.
A video message from Governor John Kasich highlighted the purpose of the meeting. “As governor my focus and commitment has been and will continue to be working to strengthen Ohio’s economy. Today you will hear about ways we are making progress on that front. This tax filing season virtually all small businesses in Ohio will for the first time benefit from a 50 percent tax deduction on the first $250,000 of business income. All together it’s part of a 2.7 billion dollar tax reduction for Ohio, the largest tax reduction in all of the nation last year,” said Kasich.
Marjorie Kruse, Deputy Tax Commissioner for Audit & Compliance, Ohio Department of Taxation, explained the new 50 percent tax cut. Most small business will be able to deduct 50 percent of the first $250,000 of Ohio net business income reported by owners or investor on their individual income tax return. This is anticipated to save businesses more than $1.6 billion over three years.
The Development Services agency highlighted three programs benefiting small businesses. Daryl Hennessy, Chief of Business Services described the programs.
The Vacant Facilities Fund is an incentive to create jobs in vacant buildings. The fund provides $500 per new employee when a business expands into a building that has been vacant for more than one year. This program is intended to encourage urban re-development.
The Brownfield Fund provides low-interest loans for assessment and remediation up to $500,000 for private business, government, and nonprofits.
Small Business Development Centers are located throughout the state and help with a wide range of services to grown or start small businesses.
Jim Wyse, NW Regional Business Development Manager for the Bureau of Workers Compensation described three programs benefitting small business.
Funding to the safety intervention grant program was increased from $5 million to $15 million with the Bureau of Workers Compensation matching every employer dollar with three dollars up to $40,000.
A portfolio of programs called Destination: Excellence rewards employers for keeping their workplace safe and getting injured workers health and back to work sooner.
The Grow Ohio program helps new businesses by offering discounts during their startup. Businesses may take a 25% discount for their first two years or join the group rating program immediately, saving up to 53% on their workers compensation premiums.
Mark Hamlin, Director of Regulatory Policy, presented Lt. Governor Mary Taylor’s Common Sense Initiative (CSI). The initiative is intended to reduce red tape for businesses and as a result business rule filings are down 25% since CSI was created. When Hamlin and his team dug deeper they found often the only reason for a policy was, “We’ve always done it that way,” which they deemed not reason enough. The focus was on reviewing rules and thinking of the impact on businesses first with an eye to flexibility for small businesses.
The event was well received by attendees. Rhonda Shindeldecker owns S & S Machining and the 50 percent tax cut attracted her to the session. “It’s been very informative,” said Shindeldecker.
Beth Keefer, CPA at William C. Keefer & Associates, CPAs Inc., also attended the seminar. “We’re always interested in economic development and our firm specializes in small businesses,” said Keefer.
For more information about these programs, visit the related department websites.
