Tag Archives: Ohio Statehouse

This week the Senate’s Public Utilities Committee held its second hearing on Senate Bill 58, the controversial measure that proposes to modify several portions of Ohio’s Renewable Portfolio Standards (RPS) and current laws governing electric utilities. Chairman Seitz, who is also the bill’s sponsor, entertained opponent testimony well into the evening, hearing a myriad of complaints from renewable energy proponents, environmental groups and business owners who operate in renewable energy supply chain industries.

Top issues from this week — August 30, 2013

Speaker of the House William G. Batchelder (R-Medina) recently announced the creation of three summer legislative study committees that will conduct a series of hearings around the state through August and September focused on higher education, prescription drug abuse and tax reform.

“The committees present an opportunity to hear from experts and others impacted by these policies to learn more and help us make well-informed policy decisions,” said Batchelder.

The legislature put its final seal of approval on the state’s biennium budget this week, voting the bill out of both chambers. The details of the $62 billion spending plan will now be reviewed by Governor John Kasich who may exercise line item veto authority on the measure.

The conference committee members did not reduce the Commercial Activity Tax annual exclusion amount from $1 million to $500,000, as previously announced. Instead, the 0.26 percent tax rate for receipts more than $1 million stays intact and the following new minimum tax payments were established:

On June 20, 2013, with just over a week until the governor must sign the state’s two year spending plan, the Ohio House and Senate leadership announced significant tax changes for inclusion in the biennial budget. The plan includes a 50 percent small business tax cut on the first $250,000 in net business income and phases in a 10 percent personal income tax cut over the next three years.

In order to offset the revenue loss resulting from the cuts, the proposal would increase the state sales tax from 5.5 percent to 5.75 percent beginning January 1, 2014. Additionally, the plan includes the following proposals:

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.

This week the Senate Finance Committee accepted a substitute version of House Bill 59, the biennial budget bill. The upper chamber removed the House’s proposal to cut the state income tax by seven percent, instead opting to restore the governor’s proposal to provide small business income tax relief. The substitute bill permits taxpayers reporting business income on their personal tax return to reduce the income tax on the first $750,000 of business income by 50 percent. Pass-through entities, trusts and estates are not permitted to claim the deduction. This provision is estimated to save taxpayers who qualify $690.2 million in fiscal year 2014 and $724.6 million in fiscal year 2015.

This week the Senate Finance Committee accepted a substitute version of House Bill 59, the biennial budget bill. The upper chamber removed the House’s proposal to cut the state income tax by seven percent, instead opting to restore the governor’s proposal to provide small business income tax relief. The substitute bill permits taxpayers reporting business income on their personal tax return to reduce the income tax on the first $750,000 of business income by 50 percent. Pass-through entities, trusts and estates are not permitted to claim the deduction. This provision is estimated to save taxpayers who qualify $690.2 million in fiscal year 2014 and $724.6 million in fiscal year 2015.

House Majority Floor Leader Barbara Sears (R- Sylvania) unveiled legislation this week that would expand Medicaid coverage to childless adults under 138 percent of the federal poverty line—a move that Governor Kasich attempted in his biennial budget.

Under the Affordable Care Act, the full cost of the expansion would be covered by the federal government for three years with the federal share phasing down to 90 percent thereafter. Sears’ bill includes a provision that would cease to cover the new population should the federal share be further reduced in the future—a concern many Republican legislators share.