Biennial budget clears Ohio Senate
The Ohio Senate passed its version of the state’s two year spending plan this week, bringing the bill one step closer to final passage. The House is not expected to agree to Senate changes next week, sending the bill to conference committee to work through items of difference in the Executive, House, and Senate versions of the bill.
The Senate made additional changes to the bill in committee prior to reporting the bill, including the creation of a new Motor Fuel Receipts Tax (MFRT), effective July 1, 2014. The new tax was established in response to the Beaver Excavating Co. v. Testa Supreme Court opinion that the state was improperly spending Commercial Activity Tax (CAT) revenue from motor vehicle fuel sales for purposes other than public highways. The MFRT is computed on the basis of the supplier’s gross receipts for the first sale of motor fuel delivered to a location in the state. It imposes a tax rate equal to .65 percent on a supplier’s gross receipts and requires that revenue arising from the tax be used for public highway purposes.
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