Ohio Budget

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 government@ohiocpa.com so we can find answers to your questions and make sure your insights are represented.

Latest budget news:

  • Jun 22, 2017

    Budget bill heads to conference committee

    The Ohio General Assembly’s conference committee will start hearings this afternoon on House Bill 49, the biennial budget bill.
  • Jun 16, 2017

    Report takes in-depth look at Ohio tax complexity

    A complex tax system that is a burden for individuals is harming Ohio’s business climate. That was the conclusion of a report released recently by the Tax Foundation, which rates the Buckeye State’s tax environment 45th among the 50 states.
  • Jun 15, 2017

    Senate budget proposal includes centralized collection option

    The newest version of House Bill 49 would give businesses the long-sought option to simplify their filing of net profits taxes through use of the Ohio Business Gateway.
  • May 25, 2017

    CPA: Centralized collection is a sensible step

    Discussions over Ohio’s biennial budget are headed in the right direction, but lawmakers need to move forward with a proposal to centralize the collection of municipal net profits taxes.
  • May 19, 2017

    Opt-in centralized collection gains favor

    Plans for an opt-in approach for centralized municipal net profit tax administration are gaining momentum in the Statehouse as the Ohio Senate deliberates over the state’s biennial budget.