Gov. John Kasich's 2017 biennial budget proposal was released Jan. 30.
It spells out major reforms to Ohio’s burdensome municipal income tax system and other types of state taxation, several of which were recommended last year by OSCPA’s Ohio Tax Reform Task Force. The group worked for more than a year developing recommendations after state leaders asked for guidance on how to make Ohio’s tax structure more competitive. OSCPA presented its recommendations to the Ohio Legislature in June, and Ohio Tax Commissioner Joe Testa met with the task force in September at OSCPA’s offices to learn more.
The budget contains provisions that will impact other Ohio taxes, education, economic development and more, including these ideas endorsed by OSCPA:
- Elimination of the throwback rule used by a number of Ohio municipalities.
- No increase in the Commercial Activity Tax rate for Ohio businesses.
- Shrinking the number of income tax brackets from 9 to 5.
- Also included were an income tax cut, a sales tax increase, and an expanded list of services to be taxed.
The actual bill language will be revised significantly as the legislation progresses through the House and Senate, with a deadline for enactment of July 1, 2017. Send your feedback to firstname.lastname@example.org so we can find answers to your questions and make sure your insights are represented.