Legal Developments

Our attorneys monitor new legislation and court rulings and post summaries of legal developments that may affect you and your business. You can sign up to receive notifications of new developments by email. Older articles can be accessed in the archive.

Homestead Exemption Changes
The Ohio General Assembly recently made changes to the “Homestead Exemption” which provides property tax relief to eligible homeowners. In the past, many homeowners were deemed ineligible for the Homestead Exemption due to annual income thresholds, but, under the new law, those income levels no longer apply.
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The Fair and Accurate Credit Transactions Act of 2003 (FACTA)
The Fair and Accurate Credit Transactions Act of 2003 (FACTA) became fully effective on December 4, 2006.
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New Ohio Residency Test
Ohio imposes an income tax on every individual residing in or earning or receiving income in Ohio. If considerable time is spent in another state there may be an issue as to where an individual resides. A new law was signed into law on April 4, 2007 but is retroactively effective for taxable years beginning on or after January 1, 2007.
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SEC Adopts New Executive Compensation Disclosure Rules
On July 26, 2006, the Securities and Exchange Commission approved extensive and comprehensive amendments to the disclosure requirements for executive and director compensation. Significant revisions were also adopted to Current Reports on Form 8-K and disclosure regarding related party transactions and security ownership of officers and directors. The SEC intends the revisions to make executive compensation disclosure and relationships in proxy statements more complete and easier to understand. The amendments will be in effect for next year’s proxy season. The amended disclosure will generally be required to be provided in plain English.
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Ohio Enacts Trust Code
Ohio has recently enacted the Ohio Trust Code which will be effective January 1, 2007. It codifies trust law as Title 58, a new title to the Ohio Revised Code and will require modifications to most trust documents.
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Special Alert: Treasury to Issue Long-Distance Telephone Excise Tax Refunds
The Internal Revenue Code currently imposes a 3% communications excise tax on amounts paid for local and long-distance services. The IRS recently announced it will no longer collect the federal excise tax on long-distance telephone services. This IRS announcement follows decisions in five federal circuit appeals courts holding that the tax does not apply to long-distance service as it is billed today.
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SEC Issues Final Rules on Securities Offering Reform
On July 19, 2005, the Securities and Exchange Commission adopted finals rules that modify the communication restrictions, the registration procedures and the offering process for securities offerings under the Securities Act of 1933 (the "Securities Act"). These rules are the most significant reform of the securities registration process in many years and will dramatically alter the manner in which public companies conduct capital raising transactions. The new rules will take effect on December 1, 2005.
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American Jobs Creation Act of 2004 Allows a Full Tax Deduction for Attorneys' Fees in Employment Discrimination Lawsuits
On October 22, 2004, President Bush signed the American Jobs Creation Act of 2004 into law. Section 703 of this Act entitled, Civil Rights Tax Relief, makes a significant change in the law with respect to the tax treatment of attorneys’ fees and court costs paid by plaintiffs in certain employment disputes. Section 703 amends the Internal Revenue Code to provide an “above-the-line” tax deduction for attorneys’ fees and court costs incurred by a taxpayer in connection with employment discrimination or “whistleblower” claims. This change in the tax code should simplify settlement negotiations and make settlements less costly for employers.
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SEC to Release Comment Letters and Responses
The Securities and Exchange Commission recently announced that it will begin publicly releasing its comment letters regarding companies’ filings (including registration statements and annual and quarterly reports) as well as company responses to these letters. The new SEC policy is a response to increased requests for the public release of comment letters and responses under the Freedom of Information Act.
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Client Alert - Ohio's Concealed Handgun Law: Private Employers Beware!
Ohio Governor Bob Taft recently signed a bill that will allow eligible individuals to carry a concealed handgun on their person and in their vehicle. This law confers new rights upon Ohio residents. It also creates a potential problem for Ohio employers, in light of the recent increase in workplace violence in Ohio and around the country. Fortunately, the new law does not leave employers defenseless.
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