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:

  • 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.
  • May 04, 2017

    Budget bill Senate-bound after House OKs OSCPA-supported provisions

    Ohio’s biennial budget bill continued its journey toward Gov. Kasich’s desk this week after legislators in the House voted it to the Senate with changes supported by OSCPA.
  • Apr 27, 2017

    Revised budget includes ups, downs

    While a number of positive changes were included in the Ohio House’s first effort to revise Gov. Kasich’s biennial budget, lawmakers also took steps in the wrong direction this past week by adding troublesome provisions to House Bill 49.
  • Apr 20, 2017

    Lower state revenue raises budget challenge

    Lawmakers are addressing a revenue shortfall of more than $600 million first by cutting $400 million per fiscal year off the revenue outlook for the coming biennium, with additional cuts expected by June.