Monday, December 24, 2012

Senate Blocks TAG Extension Bill – Seeking TAG Alternatives?


The Senate recently blocked the Dodd-Frank Transaction Account Guarantee Program (‘TAG’) Bill.  TAG was designed to temporarily insure large commercial and institutional transaction accounts that have more money than is covered by typical deposit insurance, $250,000 per account.

As a result of TAG’s expiration, many banks are seeking solutions that will allow them to continue offering full FDIC insurance coverage and retain those customer relationships.   StoneCastle, a leading investor and advocate for community banks and a CBAO Partner is available to offer immediate support to those banks impacted by expiration of TAG.  StoneCastle Cash Management offers the Federally Insured Cash Account for those depositors which require FDIC insurance on large balances.  Click here if you would like to learn more. 

Thursday, December 20, 2012

Governor Kasich Signs Financial Institutions Tax Bill!

Today Governor Kasich signed into law the Financial Institutions Tax Bill (aka HB 510 & FIT). The bill, which replaces the Dealers in Intangibles and Corporate Franchise Tax, benefits our industry in many ways.

First it brings an immediate bottom line impact to Ohio’s 220 community banks that is estimated at $30 million annually. This will allow for increased capital for community banks to meet regulatory requirements and increase lending to small businesses and consumers.

Secondly it brings some fairness to Ohio’s Tax System for community banks by “balancing” the liability and removing loopholes that many larger financial institutions have taken advantage of.

During the signing Governor Kasich reiterated the value of community banks to their local economies and how they are the economic engine that will continue to move Ohio forward.

CBAO was engaged in this legislation from its introduction and recognizes the efforts of all who made today a reality, especially Chairman of the House Ways and Means Committee Ron Amstutz, (R-Wooster) and Chairman Tim Schaffer, (R-Lancaster) of the Senate Ways and Means and Economic Development Committee.
 
 

Wednesday, December 5, 2012

HOUSE BILL 510 PASSES OHIO SENATE

On Wednesday, December 5, House Bill 510, known as the Financial Institutions Tax Bill, passed the Ohio Senate with bi-partisan support by a vote of 25-8. During his floor speech, Senator Schaffer thanked the Community Bankers Association of Ohio for their work on the bill. It is expected that the Ohio House of Representatives will concur with the Senate amendments on Tuesday, December 11, 2012.

Tuesday, December 4, 2012

HB 510 Passes Senate Committee - Saving Ohio's 221 Community Banks $30M Annually

The Ohio Senate Ways and Means and Economic Development Committee passed HB 510 which will change the way Ohio's community banks are taxed. CBAO has been working closely with the General Assembly during the past year to get the bill enacted. The bill will bring fairness and equity to the way Ohio's financial institutions are taxed. It is expected the bill will be sent to the Ohio Senate for consideration on Wednesday, December 5, 2012.

CBAO would like to thank community bankers, Scott McComb and Jack Hartings for providing proponent testimony to the committee. We would also like to thank the many community bankers from around the state who attended committee meetings and contacted their Senators in support of HB 510.