Ohio legislators are hard at work combining the House and Senate versions of the biennial state budget. Both include some great provisions, including income tax cuts that should be prioritized.
The Senate budget features a 5% income tax cut, and the House offers a 2% income tax cut. These reductions offer needed relief for Ohio families and businesses – particularly as they recover from the pandemic.
The state legislature’s continued focus on tax relief for Ohioans is extremely important as the state features some of the highest and most numerous local taxes. These local jurisdictions add complexity on top of the cost of the taxes themselves, making it more difficult for businesses to make ends meet.
While commercial lease tax reform remains a white whale in the Buckeye State, further income tax relief would be a big help for taxpayers.
On top of the tax cuts, legislators in both chambers want to address the issue of cities trying to tax people who are working from home outside of the city where their office is based.
During the pandemic, many workers have not set foot in their offices. But the cities that are home these offices, who locked down, still want to collect income tax from these workers. While this issue has resulted in legal challenges, legislators want to allow work-from-home folks to get tax refunds from the city where their office is based.
A Senate proposal would address the wasteful, ineffective practice of local government using taxpayer dollars to try and operate broadband networks. Senators want to bar localities from starting these often ill-fated enterprises.
Legislators also may still vote on sports betting legislation before June 30th. The bill includes very competitive tax (10% tax rate on bets) and regulatory policies that will enable Ohio to compete with their neighbors in Indiana, Pennsylvania, and Kentucky, all of which have legalized sports wagering.
As the House and Senate work out a final budget, they should maximize income tax relief, and protecting Ohio taxpayers from wasteful government broadband.