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LRSE Committee
BOARD
12:00pm
Federal Court Committee
SECOND
12:00pm
Grievance Committee
BOARD
12:00pm
Juvenile Court Committee
Juvenile Court
12:00pm
Executive Committee
BOARD
12:00pm
Workers' Compensation Committee
SECOND
12:00pm

TBA Signs Resolution Opposing HB166

August 23, 2019 – Toledo, Ohio

At its August meeting, the Toledo Bar Association Board of Directors approved a resolution to support the Ohio State Bar Association (OSBA) in opposing a change to the state business income tax deduction.  This change singles out Ohio lawyers and government affairs professionals, taking away their ability to claim the state Business Income Deduction (BID) starting in tax year 2020 while allowing all other similarly-situated entities to continue the practice. 

Since Tax Year 2013, Ohio law has treated all businesses deriving income through pass through entities (LLCs, LLPs etc.) the same, allowing them to deduct the first $250,000 of their income. The recent amendment targeting the profession will result in a significant tax increase for many lawyers and law firms across the state.

The BID amendment was inserted at the last minute during a harried budget process, without public debate, testimony or data to support the change. In addition to this flawed legislative process, problematic drafting will lead to many unintended consequences. One of particular concern to the TBA is that it excludes only lawyers who are licensed with the Supreme Court of Ohio, meaning that lawyers registered in other states, but who pay taxes for work done in Ohio, would still be able to claim the Ohio deduction though Ohio-based lawyers would not, putting Ohio lawyers, especially in border communities, at a competitive disadvantage.

The OSBA has begun a grassroots campaign to reverse this policy and they are seeking the support from other bar associations, law firms and individual lawyers. To learn more about this effort and how you can get involved, visit www.ohiobar.org/get-involved.