Article by Lora Miller, Director of Governmental Affairs & Public Relations
No one enjoys paying taxes. This is an undisputed fact. While we understand the need for tax revenues in general, making tax payments is about as pleasant as getting a root canal, with the latter being the least painful of the two.
Lora Miller Director of Governmental Affairs & Public Relations
In recognition of “Tax Day,”, it seems appropriate to take the time to focus on these undesirables—ie., Ohio taxes. The volume and complexity of them are so broad that they provide full employment for accountants and attorneys from now until eternity.
Following is a complete list of every tax administered by the Ohio Department of Taxation, grouped according to whether the tax tends to apply to businesses or to individuals. For more information on a particular tax, click on the appropriate link.
Individual Taxes
- Income — Ohio Individual Income Tax
- Income — Municipal Income Tax (for Municipal Net Profit Tax)
- Income — School District Income Tax
- Income — Fiduciary Income Tax
Business Taxes
- Alcoholic Beverage
- Commercial Activity Tax (CAT)
- Employer Withholding
- Financial Institutions Tax (FIT)
- Gross Casino Revenue Tax
- Horse Racing
- International Fuel Tax Agreement (IFTA)
- Kilowatt-Hour Tax
- Motor Fuel Tax
- Municipal Income Tax for Electric Light Companies and Telephone Companies
- Municipal Net Profit Tax
- Natural Gas Distribution (“Mcf Tax”)
- Pass-Through Entities
- Petroleum Activity Tax (PAT)
- Public Utility Excise
- Public Utility Property
- Replacement Tire Fee
- Resort Tax
- Sales & Use
- Severance
- Sports Gaming Receipts
- Tobacco (Including Vapor Products)
The most loathed of all taxes to Republican policy makers is the income tax. They believe that taxing a person’s income based upon how much he or she earns stifles economic growth. Ohio House Republicans have made income tax relief a major priority this General Assembly. Holding true to their commitment, this morning the House Finance Committee adopted a substitute budget bill, Substitute House Bill 33. One of the new provisions in the substitute version would reduce the number of income tax brackets by consolidating the lowest bracket (2.765% for income between $26,050 and $46,100) with the second lowest bracket (3.226% for income between $46,100 and $92,150). The rate of the new lowest bracket would be to 2.75%. The substitute bill would also suspend the indexing of income tax brackets and exemptions for inflation for tax years 2023 and 2024.
A recent Ohio Economic Competitiveness Study conducted by Miami University of Ohio and Northwood University placed Ohio at 22 out of the 50 states for state debt and taxation in 2022. Given that Ohio is constitutionally prohibited from deficit spending, that ranking is mainly due to our tax structure. The U.S. Tax Foundation’s State Business Tax Climate Index placed Ohio at 41st out of 50 states for individual income taxes. Clearly there is need for improvement in this category if Ohio is to become more economically competitive in comparison to the rest of the country.
The Ohio legislative “Business First Caucus” is responsible for commissioning the competitiveness study to determine where Ohio needs the most improvement. If you would like to share your thoughts on Ohio’s tax structure and economic condition, please email Lora Miller at loram@ohioretailmerchants.com.