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.

 

 

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.

CBAO Board of Directors shows support for HB 510 at Ohio Senate Committee Hearing

The CBAO Board of Directors took a trip to the Ohio Statehouse to show support for HB 510 at the Senate Ways and Means and Economic Development Committee Hearing this morning. Each board member introduced themselves to the Senate committee members and other attendees, representing statewide support for the Financial Institutions Tax bill.

Scott McComb, CBAO board member and President & CEO of Heartland Bank, testified in favor of the FIT Bill. "The current tax on financial institutions in Ohio is obsolete and inequitable, particularly for smaller community banks. HB 510, if passed in its current form as voted on by the Ohio House, will level the competitive playing field for Ohio's community banks... The potential savings under the new FIT will allow community banks like Heartland bank, and community banks throughout Ohio to be able to provide more capital to loan to our customers, hire additional employees, deal with the new onslaught of burdensome regulation, and continue to support the local communities they serve."