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Multistate Tax Update — April 18, 2013

The Ohio House of Representatives’ revised budget bill (Sub. H.B. 59) rejects nearly every major tax change proposed by Ohio Governor Kasich in his original budget bill. Among the major changes from Governor Kasich’s proposed budget bill are the following:

  • Eliminates the much-debated expansion of sales tax to myriad services previously not subject to sales tax.
  • Eliminates the 20 percent rollback in personal income tax and replaces it with a seven percent across the board cut that would take effect retroactively on January 1, 2013.
  • Eliminates the rollback in Ohio sales tax from five-and-a-half percent to five percent.
  • Eliminates the increase in severance tax on shale oil and gas extraction.
  • Eliminates the reduction by half in income tax imposed on small businesses.