New Ohio Budget Signed Into Law

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Governor Kasich signed the 2-year $62 billion state budget legislation last Sunday.   The legislation is intended to spur economic growth by reducing personal income taxes.  Under the new budget legislation, personal income taxes are expected to fall $2.6 billion.  The cuts in personal income tax are to be offset by an increase in the state sales tax rate from 5.50 percent to 5.75 percent.  The budget also includes a 50 percent tax break for small-business owners on their first $250,000 of income.  The budget went into effect on Monday.

While taxpayers are generally pleased by the reduction in personal income taxes, some business owners are not so happy with the changes in the state sales tax system.  In addition to increasing the sales tax rate, the new budget legislation also taxes some services that were not previously subject to tax including such varied activities as horse boarding and training; pet grooming; intrastate courier services; marine towing services; packing and crating services; refuse collection; insurance, investment counseling, loan brokerage, property sales agents fees, property management fees, title abstract work, and other financial services; accounting, tax preparation, architecture, engineering, interior design and legal services; hair styling, dating services, funeral services and other personal services; advertising, marketing, public relations and other similar services; computer online sales, software and modifications; admissions to cultural events, sports events and similar entertainment; and certain other labor, fabrication and repair services.  The list of new taxable services is extensive and the scope of some covered services may not be entirely clear.

If you have any questions about the new sales tax provisions or any other part of the new budget legislation please contact one of our tax and business attorneys at 937-223-1130 or Jsenney@pselaw.com.

AND ONE MORE THING.   Employers from time to time face situations where they must investigate an employee suspected of misconduct.  Such investigations frequently involve reviewing employee emails.   But the employer’s legitimate  need to know can run into the employee’s privacy rights.  Can employers be liable if they access an employee’s email account?  Does an employer need to have an email privacy policy in effect?    What happens if the email policy is not enforced consistently?  Does it make any difference if an employee’s email account is provided by the employer?  What if the employee accesses his or her personal gmail account using employer provided computers or Internet connections?   Employers need to know what they can and can’t do in searching employee email accounts.  Please contact one of the business attorneys at PS&E at 937-223-1130 or Jsenney@pselaw.com.