26th Annual Tuesday & Wednesday, January 24‐25, 2017 Hya� Regency Columbus, Columbus, Ohio Ohio Tax What’s on the Horizon Priceless Insights on Tax Department Initiatives, Tax Reform, Ohio Budget, and Business Taxes Joseph W . Testa Ohio Tax Commissioner, Ohio Department of Taxation Columbus Tuesday, January 24, 2017 12:45 p.m. to 1:20 p.m.
Biographical Information Ohio Tax Commissioner Joseph W. Testa Joe W. Testa was appointed Ohio Tax Commissioner by Governor John Kasich in January 2011. He is the 18th Tax Commissioner to lead the Ohio Department of Taxation. Testa leads an agency of about 1,100 employees and is successfully pursuing a mission to reduce staff and department expenditures while improving service to taxpayers by leveraging technology. Since taking office, Testa has reduced staff size by more than 250 people and cut the department’s general revenue fund spending by more than 14 percent. Technologies including an automated call distribution system, webinars for tax professionals, telecommuting for audit and enforcement staff and expanding electronic communications with taxpayers have all contributed to better service, greater efficiencies and lower costs. The Tax Commissioner is responsible for administering and enforcing most state and many local government taxes, including the state income tax, state and local sales taxes, and several business and excise taxes. All told, these taxes provide approximately $30 billion in revenues to support funding of Ohio’s schools and colleges, Medicaid, law enforcement, transportation and a myriad of other public services. Testa joined the department with nearly 30 years of public service, including a 25 year record of accomplishment as an elected official. He was first elected Franklin County (OH) Recorder in 1985, and held that office until 1992. As Recorder he was responsible for the recording of all real estate transactions, liens and various other documents as prescribed by Ohio law. Testa was then elected to the office of Franklin County Auditor, a position he held for 17 years until stepping away from office in 2009. As Auditor, he was responsible for managing an office with approximately 185 employees and entrusted with the appraisal of all real estate in the county, various fiscal services, involvement with personal property and estate taxes, and providing for Information Technology services for county government. Testa received numerous awards in office including the Outstanding Auditor Award by the Auditor of State (OH) twice, and he is the only two-time recipient of the Richard J. Makowski Outstanding County Auditor Award by the County Auditor’s Association of Ohio (CAAO), and is a past president of the CAAO. During and after his tenure as an elected official, Testa taught undergraduate courses in management, business analysis and technique, ethics, and organizational systems. Before entering public service, Testa worked in the private sector in management with a food products company. Testa earned a Master of Human Resources degree from The Ohio State University, Fisher College of Business. He also holds a Bachelor of Arts degree in Public Administration from the University of Central Florida. Testa is a veteran having served in the U.S. Navy (1968-72) from which he received a Vietnam Service Medal. He is married, the father of two sons, and has three granddaughters. Commissioner Testa’s keynote slides are available at www.MECseminars.com under Taxation tab and Presentations.
Strengthening Ohio for Growth Joe e Testa ta Ohio io Tax x Commiss mmissioner ioner Ohio io Tax x Conf nfere rence nce Janua nuary y 24, 2017
Ohio: A Better Place Today… • Budg dget t surpl rplus us exceedi ding ng $2.0 .0 bi billion. n. • Tax x cuts ts total otaling ing $5.0 .0 bi billion on sinc nce e Gover vernor nor Kasich took offic fice. • No Nov. Unemplo ployme yment nt 4.9% 9% (U.S. avg vg. . 4.7% 7% ) • 436 36,20 ,200 0 new pri w private sector r jobs bs since ce Januar nuary y 2011 11.
Ohio Oh io is is Ba Back k on on Tra rack Ohio #1 for gro rowt wth h in number er of middle le-mar market t fi firms s • (revenues enues of $10M - $1B) since e 2011 (Natio tional nal Center er for the Middle le Mark rket et, , OSU Fishe her r Colleg lege of Business) ess) 3rd Best busin iness ess climat ate e in the country; ; up fro rom #7 n nation onally ally • in 2015 (Site e Selection tion Magazin azine) e) 8 th th Best tax climat ate e for small ll business ness (Small ll Business ess • Entrepr pren eneur eurship ship Council, ncil, 2016)
Oh Ohio io: : Si Signs ns of of Sl Slowd wdown wn • Tax x Reven venue ues: s: St Still l Gro rowt wth bu but Short of Estimat mates es. F.Y. 16 clos osed d w/ w/appr pprox. x. 2% gro rowth wth. • GOVERNOR ERNOR: : Expe pect ct Low w – No No G GROWTH TH BUDG DGET ET. • F.Y. 17 Tax x Reven venues s ─ all taxes ─ 2.7% 7% be below estimat mates s thru ru Decemb mber.
ODT T Pro roduc ductivity tivity Increase ase Staff size Tax revenues (billions) 1400 $32 Revenue ues +26% 1350 $31 1,368 1,347 1300 $29.82 $30 $29.45 1250 $29 $28.09 $28.08 1200 $28 1,178 1150 $27 $26.40 1100 $26 1,111 $25.30 1050 $25 1,066 1000 $24 Staff size 999 -28% $23.70 987 950 $23 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
A vi A visit sit to th o the F e Fai air
Ohio: o: Tax ax Cuts ts Ti Timelin line – 2011 11 - 16 16 $5 bil illi lion n bre reak akdo down wn 2011 11 – Estat ate Tax: : $1.0B .0B • 2013 3 – Inco come e Tax x (10%) 10%): : $2.7B .7B • 2014 14 – Earne rned d Inc ncom ome & B Business iness Dedu ducti ctions: ons: • $481M 1M 2015 15 – Income me Tax (6.3% 3%): : $90 900M 0M •
Cutting Taxes for Business 2016: 6: 100% 100% Dedu ducti ction... n...NO NO TAX X on fi first st $250K 50K. • 607,0 7,000 00 Taxpa xpayers s took Busi sines ness s Inco come e Dedu ducti ction on • (TY 2015). 15). 3% Fl Flat Tax on Busines ness s Income me • over ver $250K 50K. .
Oh Ohio io Inc ncom ome e Tax ax Chan anges ges • Fi Filing ng ope pened d Jan. . 23/close /closes Apr pril l 18. 8. • Inde dexing ng of in inco come me tax br brackets ts and d pe personal al exempt ptions ns re resumes s in 2016. 6. • Ne New de w dedu duction: tion: STAB ABLE LE Ac Acco count/ unt/$2,00 $2,000 0 pe per r di disabl bled d be benefic ficiar ary pe per y r year.
Da Data ta-Driv Driven en Audit dit Expanding ding data-dr driv iven en audit pro rogram am in 2017. Last • year, , sales es tax only; ; now w CA CAT – EWH – Busin iness ess Income e Deductio tion. n. Benefit fits: s: Gr Greater er objectivit tivity; ; More focus/ef /effic icienc iency. • Ex Explor oring ing tr trend nds: s: • NAICS CS Compar parativ ative e / Successiv ssive e Filings ings IRS Data
Fighting Tax Fraud Blocked d more than a $1/2 billion lion in attempt pted ed theft of • inc ncome me ta tax re refunds nds sinc nce e Ju June ne 2014. 14. Security ity and preven entio tion n measur sures es appear ar to det eter / Attempts pts • and amount nt of $$ sough ght t down wn signif nific icant ntly ly. Impro roved d system em analytics ytics to bet etter identify tify true fraud and • reduce impact on legitimate taxpayers / adding ‘learning model’.
Fighting Tax Fraud ID Confirma firmation tion Quiz z – 99.5 9.5% % pa passed d (in 2016). 6). • Quiz z takers do down wn signif nificantly icantly: • 2015 15 = 1.8M 8M took quiz. z. 2016 6 = 712,00 2,000 0 too ook qu quiz. Questions tions abo bout the quiz z do down wn 50%. %. •
Fi Fight hting ing Tax ax Fra raud • IRS RS, stat ates es, , an and industr dustry y shar arin ing g information. ormation. Ohio hosted a ‘best practices’ conference with h neighborin ighboring g stat ates es (PA – KY – WV V – IN – MI). • Ohio: io: on-line line fi filer ers s (I- File): Driver’s license / stat ate-iss issued ed ID & email ail ad addre ress ss. • Softw tware are vendor dors: s: email ail ad addre ress ss.
De Depar artme tment nt of of Taxat axation ion News ws STARS ARS Proj roject ect: : Lat atest est rele leas ases es – Oct ct. . (P (PAT, , FIT, , • Resor sort t Area, a, 9-1-1 ); Jan. ’17 Public Utility Excise. 22 22 tax axes es no now w in in produc roducti tion on sin ince ce 2012 2 rela launc nch. • Fin inal al Rele lease: ase: Pas ass-Thr Through ough Ent ntit ity y Tax ax (J (June ne). ). • Proj roject ect Com ompl plete – June ne 30, , 2017. •
Recommend
More recommend
