Ohio Senate Bill SB20

Ohio 2023-2024 Regular Session

• Introduced: 1/11/23

Caption

Incorporate changes in the Internal Revenue Code into Ohio law

Impact

The swift enactment of SB20 is deemed necessary for immediate operational compliance for taxpayers in Ohio. By declaring the need for emergency measures, the bill allows for immediate effectiveness, helping to shield taxpayers from unnecessary complications on their 2022 tax returns. This provision intends to facilitate a smoother tax filing experience by allowing taxpayers to avoid adjusting their returns based on outdated provisions. The integration of updated federal laws into state statutes will streamline the tax compliance process.

Summary

Senate Bill 20 (SB20) proposes an amendment to section 5701.11 of the Ohio Revised Code, aiming to incorporate updates to the Internal Revenue Code that have occurred since February 17, 2022. This change is essential for maintaining alignment between Ohio state tax laws and federal tax regulations, ensuring that Ohio tax code remains consistent with current federal standards. The bill addresses potential discrepancies that could arise if changes at the federal level are not reflected in state law, which could create confusion among taxpayers.

Contention

Despite its objective to simplify compliance and clarify tax regulations, the bill may face scrutiny regarding its urgency and the implications of retroactively applying changes to tax law. Some lawmakers and stakeholders might express concerns about the speed at which the changes are implemented, questioning whether adequate time and resources have been provided for taxpayers to adapt. Additionally, there might be discussions around ensuring that future amendments keep pace with ongoing updates to federal tax legislation to avoid similar issues down the road.