12 September 2018 Ohio legislation exempts out-of-state disaster services from income tax withholding and employment taxes Recently enacted legislation exempts out-of-state businesses and their nonresident employees from certain Ohio tax, (including income tax withholding and unemployment insurance) and other regulatory requirements if they are providing services temporarily within the state in connection with a declared state disaster or emergency. (HB 133; Act 132.) The law, effective September 28, 2018, authorizes state and local tax deductions and exemptions, payroll tax exemptions, and certain state and local regulatory exemptions for certain types of businesses and their employees when engaged in the repair of damage to critical infrastructure such as public utility and communications property and equipment in Ohio caused by a disaster. In order to qualify, the disaster needs to have been one for which the governor or the president of the United States issued an emergency declaration. In general, exemptions and deductions apply only during a "disaster response period" — defined to span from the 10th day before the emergency declaration through the 60th day after the declaration expires. Ohio joins a number of states that have passed legislation over the past couple of years (i.e., Arkansas, Kansas, Mississippi, Oregon, Texas, Vermont and Virginia) to provide similar tax relief for temporary nonresident employment connected with disaster and disaster-recovery efforts.
Document ID: 2018-1795 | |||||||||
