Ohio adjusts fixed asset tax
July 31, 2012
Federal, state and local governments have increasingly looked to cut taxes recently in an effort to put more money in consumers' pockets, and thus stimulate the economy. Some of these tax cuts and incentives have been directly related to the fixed assets
of businesses and public organizations.
The Cleveland Plain Dealer recently reported that the Ohio state legislature imposed significant tax cuts to local municipalities, including those previously applied to capital equipment and fixed assets. The local government in Mentor, Ohio, is reeling, as these taxes - along with others - used to bring in between $500,000 and $1 million for the city annually.
However, the reductions to the fixed asset
tax will likely help businesses of all sizes by saving them money around April. The Ohio Department of Development also offers economic development grants that, much like asset depreciation
reporting, incentivizes purchases of new fixed assets in several sectors.
All businesses need to properly manage fixed assets to ensure that tax season goes smoothly. Additionally, through the use of asset depreciation calculations, businesses can see returns on their fixed asset investments over each item's lifespan.