Roemer, Lanese's Municipal Tax Penalty Cap Bill Passes Ohio House

COLUMBUS – State Representatives Bill Roemer (R-Richfield) and Laura Lanese (R-Grove City) hailed the Ohio House’s passage of House Bill 519 last week. 

In current law, taxpayers may be charged late filing fees that exceed the actual amount owed, especially if one’s tax liability is relatively small. A taxpayer could be charged as much as $150 in fees annually per return even if they owe no tax. 

“The purpose of this bill is to ensure that no Ohio taxpayers are faced with excessive or arbitrary penalties,” said Roemer. “Simply put, these unfair kinds of taxation practices do not treat our hard-working taxpayers with the respect they deserve. This must change if we truly want to do right by Ohioans and attract more residents from other states.”

Under the bill, late filing penalties would be capped at $25 per return, ensuring that taxpayers with zero or minimal tax liabilities are not unfairly punished. Taxpayers would also be exempt from any late filing penalties on their first failure to timely file.

Additionally, tax administrators would be prohibited from sending inquiries or notices to taxpayers who have received a filing or payment extension before the extended due date. If this prohibition is violated, tax administrators would be required to reimburse the taxpayer for any costs incurred to respond to that inquiry.

The bill will now go to the Ohio Senate for further consideration.