COLUMBUS—State Representative Jim Hoops (R-Napoleon) applauded the passage of legislation by the Ohio House of Representatives that would change the manner in which some small vendors remit sales taxes, as well as exempt feminine hygiene products from sales and use taxes. House Bill 545 was sponsored by Rep. Steve Arndt (R-Port Clinton).
The bill would allow small businesses defined as a micro business and that have gross sales of less than one million dollars in a calendar year the option to file their sales tax with the Department of Taxation on a cash basis as opposed to the accrual method which is required under current law.
House Bill 545 provides support to small businesses, strengthening those that have their most active sales periods during certain months of the year, or those that are relatively young. By allowing vendors to delay sales tax remittance until after the vendor has received a customer’s payment, or when the businesses have reached a stable cash flow, Ohio’s small businesses can continue to thrive and serve both Ohioans and out-of-state visitors.
The bill was also amended to include an exemption for feminine hygiene products from sales and use taxes, giving Ohioans the ability to purchase such essential products at more affordable prices.
“The passage of House Bill 545 is another way to simplify the state sales tax code for small businesses,” Hoops said. “We will continue to look for other opportunities to streamline the tax system for small businesses and when we do that everyone wins.”
Having passed out of the House, House Bill 545 now awaits consideration by the Ohio Senate.